Bank Bills Test Industry Muscle

By Emily Pierce
Roll Call Staff

May 4, 2009, 12 a.m.

Despite being blamed for the near collapse of the U.S. economy, banking interests remain a powerful force in shaping — and killing — legislation on Capitol Hill. But their muscle is being tested by a series of bills aimed at bringing the industry under Washington’s regulatory thumb.

“I don’t know how they could bring us to this situation in this economy and have lost so much credibility as an institution,” said Senate Majority Whip Dick Durbin (D-Ill.), who suffered defeat in a major battle with the banks last week. “To think they still have clout in this chamber to dictate what we’re going to do in terms of mortgages and foreclosures. It really troubles me.”

Durbin pointed to an April 23 Gallup Poll showing that only 18 percent of Americans expressed strong confidence in U.S. banks. But Durbin indicated that he believes the $37 million in campaign contributions and $56 million in lobbying expenses that commercial banks spent during the 2008 election cycle helped bolster the banks’ case with his colleagues. [more]