During a recent press conference, President Obama blamed George W. Bush for the nation’s fiscal condition. “When I walked in,” he declared, “wrapped in a nice bow was a $1.3 trillion deficit sitting right there on my doorstep.” Earlier this year he asserted that “we came in with $8 trillion worth of debt over the next decade.”

Neither statement is correct, according to the Congressional Budget Office (CBO). True enough, the outgoing Bush administration bequeathed big deficits to Mr. Obama. The expected 2009 deficit was $1.19 trillion, not $1.3 trillion, however—and the actual deficit for 2009 came in at $1.41 trillion, meaning that the new president added some $220 billion to the total.

Far more significant, however, was the president’s misstatement that Mr. Bush and the Republicans left the country with $8 trillion of debt over the next 10 years.

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Republicans ended their three-day filibuster of a financial regulatory overhaul Wednesday, reaching agreement with Democrats to begin debate on a bill aimed at curbing the risky investment practices that brought the U.S. economy to the brink of collapse.

After voting three times this week to block debate, GOP senators decided to reverse course and attempt to reshape the bill through the amendment process. The change in tactics came after Senate banking committee Chairman Christopher J. Dodd (D-Conn.) and the ranking Republican on the panel, Sen. Richard C. Shelby (Ala.), announced that they had again reached an impasse in their efforts to reach a bipartisan compromise.

Democrats had embraced the GOP filibuster as an opportunity to portray Republicans as defenders of powerful special interests, in particular major banks and investment houses. Senate Majority Leader Harry M. Reid (D-Nev.) had threatened to keep the Senate in session overnight Wednesday to reap maximum political benefits.

Speaking at a rally in Quincy, Ill., an economically depressed Mississippi River town, President Obama hailed the bill’s advancement and assured an exuberant audience of 2,300 people that the financial sector would face tough new restrictions. “It was one of those heads, they [win] — tails, you lose” situations on Wall Street, Obama said. “What was working for them was not working for ordinary Americans.”

After Shelby and Dodd announced their impasse, Reid and Senate Minority Leader Mitch McConnell (R-Ky.) delivered back-to-back Senate floor statements, agreeing that proceedings would begin at 12:15 p.m. Thursday. Reid said he would allow votes on numerous GOP amendments, a pledge that some Republican senators had sought before agreeing to lift their objections.

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Senate Republicans held ranks on Monday and blocked a Democratic effort to overhaul the financial system and crack down on Wall Street.

In a 57-41 vote, Democrats fell short of the 60 votes necessary to proceed to the Wall Street bill.

One Senate Democrat, Ben Nelson (Neb.), joined Republicans in voting against the motion. Nelson had reportedly been pushing for a provision backed by Warren Buffett that would have largely exempted existing derivatives contracts from the bill’s new rules.

Senate Majority Leader Harry Reid (D-Nev.) immediately moved to intensify the pressure on Republicans by scheduling additional procedural votes on Tuesday and Wednesday that would open debate on the financial reform bill.

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“Today, Republicans face a major choice: Will they stand up for the American people, and join us to hold Wall Street accountable for the reckless gambling that cost 8 million Americans their jobs and millions more their economic livelihood? Or will they follow the marching orders they’ve been getting at their secret, closed-door meetings with Wall Street executives, and continue to protect Wall Street?

“We remain eager to work with Republicans who are sincere about reforming Wall Street, and we are hopeful for bipartisan agreement on this important effort.  But there are no two ways about it: a vote against even opening debate on holding Wall Street accountable is a vote to protect Wall Street.”

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Washington, D.C. – Senate Majority Leader Harry Reid and Senate Banking Committee Chair Chris Dodd sent a written response to Senate Republican Leader Mitch McConnell today, responding to a recent letter from the Senate Republican Caucus outlining Republicans’ intent to protect Wall Street and keep the same rules in place that brought America’s economy to the brink of collapse.   In their response, Reid and Dodd call out Republicans for “mischaracterizing the legislation and protecting Wall Street,” and urge them to “reverse course and join with us to produce a strong bipartisan bill.”

Further, Reid and Dodd reminded Senate Republicans about “the stakes for America’s economy” related to Wall Street reform.  Senate Democrats are committed to passing Wall Street reform this year to help create a financial system that works for all Americans – not just the sort of Wall Street executives that Senator McConnell recently met with behind closed doors.

Excerpts of Reid and Dodd’s letter to Senator McConnell:

“As you know, Democrats have been working in a bipartisan manner for months.  Any claim to the contrary at this late stage of the process seems nothing more than a transparently partisan effort to kill Wall Street reform.”

“Based on this process, Chairman Dodd developed a bill that incorporated numerous ideas from the bipartisan working groups and his discussion with individual Republican members of the committee.  Indeed, while referring to the committee-reported bill, Senator Shelby, the ranking member, was reported to have said that ‘lawmakers are 80 percent in agreement,’ certainly not the hallmark of a partisan product.”

“Unfortunately, the Senate Republican leadership seems more interested in mischaracterizing the legislation and protecting Wall Street.  As Nobel Prize winning economist Paul Krugman noted recently, ‘It’s a truly shameless performance…pretending to stand up for taxpayers against Wall Street while in fact doing just the opposite.’  Krugman went on to observe that Senate Republican leaders have held meetings with Wall Street lobbyists in an effort to coordinate their political strategy.”

“Given that the stakes for America’s economy and our taxpayers could not be higher, we strongly urge you to reconsider your approach and truly work with us on this much needed reform.”

Below is the text of the letter to Senator McConnell:

April 20, 2010

The Honorable Mitch McConnell

Republican Leader

S-230, The Capitol
Washington, D.C. 20510

Dear Senator McConnell:

We write in response to the April 14 letter signed by the members of your conference asking that a “bipartisan and inclusive approach” be used to develop Wall Street reform legislation.  As you know, Democrats have been working in a bipartisan manner for months.  Any claim to the contrary at this late stage of the process seems nothing more than a transparently partisan effort to kill Wall Street reform.

Beginning last year Banking Committee Chairman Dodd led dozens of bipartisan meetings and committee hearings to develop a consensus for a comprehensive, Wall Street reform bill.  Additionally, beginning late last fall, Chairman Dodd created bipartisan working groups within the committee and worked intensively with Senators Shelby and Corker to resolve any lingering policy differences.

Based on this process, Chairman Dodd developed a bill that incorporated numerous ideas from the bipartisan working groups and his discussion with individual Republican members of the committee.  Indeed, while referring to the committee-reported bill, Senator Shelby, the ranking member, was reported to have said that “lawmakers are 80 percent in agreement,” certainly not the hallmark of a partisan product.

With so much bipartisan progress on the substance of the legislation, it seems clear that we could quickly pass a bipartisan bill if both sides were working in good faith.  Unfortunately, the Senate Republican leadership seems more interested in mischaracterizing the legislation and protecting Wall Street.  As Nobel Prize winning economist Paul Krugman noted recently, “It’s a truly shameless performance…pretending to stand up for taxpayers against Wall Street while in fact doing just the opposite.”  Krugman went on to observe that Senate Republican leaders have held meetings with Wall Street lobbyists in an effort to coordinate their political strategy.

Given that the stakes for America’s economy and our taxpayers could not be higher, we strongly urge you to reconsider your approach and truly work with us on this much needed reform.  As members who have worked hard on this legislation, we ask you to reverse course and join with us to produce a strong bipartisan bill.

We stand ready to consider additional suggestions from Senate Republicans before and after the bill reaches the Senate floor.  Senator Dodd is committed to continuing his dialogue with Senate Republicans and there will be opportunities for members of both parties to offer amendments to this bill on the Senate floor.   The American people expect us to work together to bring true accountability to Wall Street and do all we can to protect them from another financial crisis.

Sincerely,

HARRY REID                                                             CHRIS DODD

Majority Leader                                                           United States Senator

“Thousands of Nevadans and millions of Americans rely on unemployment benefits to support their families during these economic times.  Families are struggling and now more than ever they need all the assistance they can get.  That is why it was important for us to extend these benefits. We will continue to work toward a long-term extension of these benefits to ensure that middle-class Americans will have the economic certainty that they need to make ends meet.

“I was encouraged to see some of my Republican colleagues join us in extending these benefits, but I am disappointed that so many more voted to continue blocking this much-needed measure.  It is beyond reason why the same Republicans who gave tax breaks to Wall Street bankers who played Russian roulette with the economy and rich CEOs who shipped your jobs overseas now want to block assistance to unemployed Americans.  Senate Democrats remain committed to supporting Americans still looking for work, passing job-creating measures and strengthening our economy.”

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If the Nevada Senate election were held today, Senate Majority Leader Harry Reid (D-Nev.) says he’d win.

Reid, the top Senate Democrat, who’s facing arguably the toughest reelection fight of his career, expressed confidence that he would pull out a victory this fall.

“If the election were held today, I’d win,” the senator told the Nevada Appeal in an interview.

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“Families in Nevada and across America are struggling to make ends meet, and many are relying on unemployment insurance and health benefits as they look to find work.   It is inexcusable and irresponsible for Republicans to once again block the extension of these benefits.  Their excuses ring hollow to American workers who lost their jobs through no fault of their own and are trying to put food on the table, pay the rent, and take their children to the doctors.

“I am focused on passing our jobs agenda to put America back to work and support unemployed workers while they look for new jobs. I remain committed to extending these benefits short-term while we work toward a long-term solution.”

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“Nominees under President Obama have fared worse than others in recent memory. Regrettably, Senate Republicans have dedicated themselves to a failed strategy to cripple President Obama’s economic initiatives by stalling key Administration nominees at every turn. With the recess appointments of these highly-qualified individuals, President Obama has shown that he is serious about getting the right team in place to create jobs and protect the American workforce, and I support his decision.”

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Washington, DC— Senate Majority Leader Harry Reid, Senate Finance Committee Chairman Max Baucus, Senate HELP Committee Senior Member Chris Dodd, Senate HELP Committee Chairman Tom Harkin and Senator Robert Menendez joined Bonnie Cramer of the AARP and Dr. Fred Turton of the American College of Physicians at a press conference this morning to discuss how a simple up-or-down vote on adjustments to health reform legislation will help America’s seniors.  Senate Democrats want to make this good law even better by closing the ‘donut hole’ to make prescription drugs more affordable for seniors.

“Among the biggest winners from the passage of health reform are seniors in Nevada and across America,” said Senate Majority Leader Harry Reid.  “The bill that the President signed yesterday cracks down on waste, fraud and abuse in Medicare and stops insurers from charging higher premiums because of age or pre-existing conditions.  With the improvements that we’re trying to make on this already good legislation, we’ll start to completely close the ‘donut hole’ that raises prescription costs for nearly 60,000 Nevada seniors and millions more nationwide.”

Senator Baucus said: “Health care reform is a victory for seniors, in Montana and across the country, and this week, we are working to make that victory even sweeter. The new law provides free preventive care and annual wellness visits in Medicare to keep our seniors healthy, and it improves the financial stability of Medicare for years to come.  The law will also cover half of the costs of brand name drugs in the Medicare Part D donut hole, where, before now, millions of seniors were forced to pay the full cost of expensive medicines they needed.  This week, we will make this good bill even better by closing the donut hole completely and providing seniors with an extra $250 when they reach the coverage gap this year.”

“Health care reform will bring real and immediate benefits to seniors in Connecticut and across America,” said  Senator Dodd. “For 547,000 seniors in Connecticut, it means extending the solvency of the Medicare they rely on for their care.  It means they’ll be able to get free preventive care.  And it means finally closing the ‘donut hole’ that leaves too many seniors – 97,000 each year in Connecticut – stuck paying more than they can afford for the medicine they need.”

Senator Harkin said: “It’s been a long, hard-fought battle, but the hundred year struggle to provide affordable, quality health care coverage is over.  And the unsung heroes of that battle are the doctors, nurses, seniors and advocates who stood up for reform.  I am so proud to be here today with Americans who saw through the special interests’ distortions and weighed in on the side of truth.”

“With a simple up-or-down vote this week, we will have improved on the historic new health insurance law to deliver full prescription drug coverage to seniors, among other important benefits,” said Senator Menendez. “Our colleagues on the other side of the aisle want to take that away from seniors, and we are fighting to ensure seniors will be able to keep it.”

Bonnie Cramer said: “We’re so close today to providing millions of older Americans the security of knowing that they can count on taking the prescription drugs they need without skipping days, splitting pills or missing meals.  We need the Senate to now act and pass legislation that includes key priorities of AARP members and all older Americans, including closing the doughnut hole.”

“I am so proud to stand with you today as the Senate begins the work of putting the final finishing touches on legislation that preserves and strengthens the security that Medicare provides America’s seniors, while extending this core principle to their children and grand-children,” said Dr. Fred Turton.

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