Yesterday, I reported on a rift between the White House and congressional Democrats, who fear that the president's reluctance to emphasize the difference between their two parties will hurt their chances in the fall elections. In case you weren't clear on what that means, here's an object lesson: Kansas Republican Sam Brownback proposed an amendment to the financial reform bill; it came to the Senate floor before being set aside and not voted on. The provision exempted auto lenders from consumer protection regulation, essentially creating a haven for risk in the markets. The White House released a statement criticizing the proposal:
Throughout the debate on Wall Street reform, I have urged members of the Senate to fight the efforts of special interests and their lobbyists to weaken consumer protections. An amendment that the Senate will soon consider would do exactly that, undermining strong consumer protections with a special loophole for auto dealer-lenders....Claims by opponents of reform that this legislation unfairly targets auto dealers are simply mistaken. ... We simply cannot let lobbyist-inspired loopholes and special carve-outs weaken real reform that will empower American families.
While it is a strong policy statement, it's also leaves something out: Who proposed this amendment? Did it just appear on the floor? We don't know. Here's a take from the Senate's Democratic Policy Committee, chaired by North Dakotan Byron Dorgan:
Senate Republicans have once again declared their support for special interests and Wall Street banks, all at the expense of the American consumer. Senator Brownback has brought forward an amendment to carve-out auto dealer financing from consumer protection rules written by the new Consumer Financial Protection Bureau. This amendment would hurt America’s families, our military, our community banks and credit unions, and our responsible auto dealers, all of whom would be left vulnerable to the predatory practices of Wall Street and the minority of dealer-lenders who sell unfair auto loans with hidden fees.
There's obviously going to be a difference in tone and style from the White House and from a Democratic communications group, but Democrats in Congress, though, are desperate for this election to be a choice between Democrats and Republicans, not a referendum on Congress. They need the commander of the bully pulpit to accentuate that choice. The White House is still not sure how to do that without damaging Obama's image, but if the president wants to govern he needs to protect his party's congressional majorities.
-- Tim Fernholz
