Lawmakers debate Wall Street bill - WAOW - Newsline 9, Wausau News, Weather, Sports

Lawmakers debate Wall Street bill


WASHINGTON (ABC)--  Wall Street companies continue their parade of shame on Capitol Hill.  Lawmakers will take Lehman Brothers to task Tuesday.

President Barack Obama will head to Wall Street Thursday to argue his plan to overhaul the financial industry. 

Robert Gibbs, White House Press Secretary says, "We don't mark the second anniversary of our financial collapse by having in  place the same rules that led to that collapse."

As Treasury Secretary Timothy Geithner huddled with moderate Republicans, debate on the bill began with harsh words for Republican critics.  

Senator Harry Reid, (D) Majority Leader, says, "Wall Street sees no need to ensure this kind of crisis never happens again.  So far, neither do our Republican friends."

Senate Republican Leader Mitch McConnell had been calling the bill a bailout, citing a $50 billion fund to unwind failing banks.  Now Democrats say they'll remove that fund. 

McConnell says, "Both parties agree on this point: no bailouts. In my view, that's a pretty good start."

Progress comes just as the powerful Wall Street firm Goldman Sachs, is facing charges of fraud.  Goldman is alleged to have duped clients into investing in a mortgage product put together by another one of its own clients, John Paulson, who was allegedly looking to profit when the product then failed.

Gregory Zuckerman, author of "The Greatest Trade Ever," says,"What is interesting to see is whether the senior people knew details of how this deal was sold to investors."

Federal regulators say investors lost a billion dollars.  Goldman Sachs stepped up its defense, calling the firm's actions "entirely appropriate".

Online Reporter: Jill Courtney

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