September 9, 2009
-
News: Kennedy's Passing Impact On Finance
Senator Edward Kennedy's death had left a void in many hearts. His presence in Washington will also be sorely missed. Senator Kennedy's passing also left a whole on the Senate Health, Education, Labor and Pensions Committee. Rumor has it that Senator Christopher Dodd (D-CN) is a likely candidate for his replacement as head of the committee. However, the move would mean that Dodd would have to give up his position as Chairman of the Banking, Housing and Urban Affairs Committee. Dodd played a strategic role in the passing of the credit card reform act and has continued to be a strong advocate for cardholders. What would his loss mean to the nation's credit cardholders? How might his replacement affect the banking industry and credit card companies?
Further talk is that Senator Tim Johnson (D-SD) could replace Dodd as the Chairman on the banking committee if Dodd should choose to move over to the health committee. Senator Johnson might be just what the credit card companies have been hoping for. Johnson opposed Dodd with matters of the credit card reform bill and he remains a strong opponent of President Obama's proposed new consumer financial protection agency aimed at stronger regulation of banks. South Dakota, Johnson's home state, has some appealing laws for lenders which has made the state home for several major financial institutions. Their campaign contributions could play a powerful role in the workings of the finance committee.
The timing isn't the most opportune time for President Obama as he pushes to get his proposed consumer protection committee implemented. If Dodd leaves before the job is done and Johnson takes over in his place, it could mean the fall of Obama's plans. It doesn't appear to be any question that Johnson would be given the position if Dodd resigns it; the question now is will Dodd make the switch to the health committee. At this point, it's all in his hands. Most likely, the banking industry and credit card companies will be paying close attention to the matters of Washington during the next few days as the candidates make their choice.