In it, but not of it. TPM DC

Dems and Republicans Clash Over Wall Street Reform Fix


The new proposal is already meeting fierce opposition from Republicans who already oppose the entire legislation, including Sens. Judd Gregg (R-NH) and Richard Shelby (R-AL). But Democrats have been conferring closely with Republican swing votes and presumably wouldn't be pushing it if it didn't meet their concerns.

The plan covers $11 billion worth of the $19 billion deficit, according to CBO, by prohibiting new programs under TARP and eliminating any further TARP authority beyond what's already been authorized. The $8 billion (plus a bit more) comes from increasing the size of the FDIC's Deposit Insurance Fund, by increasing premiums on depository institutions with $10 billion in assets or more.

In part, then, it removes a direct tax and replaces it with insurance fees.

About The Author


Brian Beutler is TPM's senior congressional reporter. Since 2009, he's led coverage of health care reform, Wall Street reform, taxes, the GOP budget, the government shutdown fight and the debt limit fight. He can be reached at