New Banking Chairman May Bring Changes
Senate Banking Chairman to be replaced by Tim Johnson…
The chairman of the powerful Senate Banking Committee since 2007, Sen. Chris Dodd (D-Connecticut), has decided not to seek reelection after 5 terms in the U.S. Senate. Dodd and the Senate Banking Committee were at the center of efforts to deal with the economic meltdown. He also has played a prominent role in the healthcare debate. Considered the most vulnerable incumbent for the upcoming election cycle, behind Sen. Majority Lead Harry Reid, Dodd’s numbers plummeted following the crisis in mortgage lending.
The key Senate position is to be filled by Tim Johnson, (D-S. Dakota), a champion of credit card issuers and a concern for consumer groups who see him as a foe of tighter regulation of the credit industry. Johnson was the only Democrat to vote against the recent landmark regulation, the CARD Act, that was signed into law by President Obama in May 2009. He has intervened on the behalf of payday lenders, urged the Federal Deposit Corporation to ease lending restrictions and urged regulators to consider the persepective of the industry.
There is pressure from progressive Democrats to consider Jack Reed (D-Rhode Island) for the position instead of Johnson; but according to a statement from his office, he’s not interested in the position. “Senator Johnson is next in line to assume the chairmanship. He has been an active member of the Banking Committee and an outstanding advocate for the people of South Dakota and Senator Reed looks forward to continuing to work with him,” said Chip Unruh, press secretary to Reed. “Sen. Johnson has a long history of supporting strong consumer protections for homeowners, savers, investors, retirees, pensioners and most importantly, those underserved by financial institutions,” Julianne Fisher, Johnson’s spokeswoman, said.
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