Editorial: Senate Has to Do Better

Banks ahead, American taxpayers lagging behind. That’s the disappointing reality here after the first week of Senate action on the financial reform bill.
Senators overwhelmingly rejected an important provision that would have required large financial firms to pay $50 billion upfront to create a so-called resolution fund, which would have been used to dismantle big banks at risk of failure. Instead, the bill now authorizes regulators to borrow the needed cash from the Treasury to be paid back later, mainly by selling off assets of the failed firm.

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BAILOUT WOULD REQUIRE BANKS TO TRACK PERSONAL CHECKING ACCOUNTS TO FEDS

Subtitle G of the Dodd discussion draft bill requires that records be maintained and reported “for each branch, automated teller machine at which deposits are accepted, and other deposit taking service facility with respect to any financial institution, the financial institution shall maintain a record of the number and dollar amounts of deposit accounts of customers.”
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