Much like the phony "New Labour" nonsense that Tony Blair introduced, the New Democrat Coalition is all about putting a smiley face on right wing Democrats. By caving to Wall Street's demands they are part of the problem in the US. We don't need to be giving more to that pampered group who are already living the high life at the expense of everyone else. It's hard to think about how much cozier Democrats could be to corporate interests but this group pushes the relationship to new limits. Once again, big money from Wall Street talks.
A plan to regulate derivatives — contracts between two private parties betting on the chance of bonds' default, or price movements of oil, or shifts in the value of the dollar or interest rates_ is mired in controversy. Lots of money is at stake, so lots is also flowing to campaigns.
A House-Senate negotiating committee narrowing differences between competing financial regulation bills will debate the issue next week. The Senate's version would impose tougher restraints on derivatives and force banks to spin off their divisions that trade in them. The version the House passed last year is weaker on derivatives, and wouldn't force banks to spin off their trading business.
On Wednesday, 43 members of the New Democrat Coalition — a group of 69 business-friendly House Democrats — sent a letter to the top House-Senate negotiators arguing against the Senate provisions and in favor of the weaker House version.
