Both Nebraska U.S. senators are on the same page when it comes to Financial Reform Legislation. Democratic Senator Ben Nelson has received a lot of criticism when he joined Republicans in voting against advancing the measure. Republican Senator Mike Johanns this would have regulated investment securities that are referred to as derivatives.
“Really is a contract whereby, lets say a bank makes a long-term loan and no one can predict where interests are so they will buy this contract to try to protect themselves against the risk interest rates go up. There are a hundred variations but that’s a good example of it.”
Senator Johanns says there was the word “retroactive”.
“It would say it applies retroactively so it would be like interfering with your mortgage contract. It would be like saying if your mortgage is now more than the value of your house, you need to put more money into the house. You would say wait a second. The government can’t tell me how to change a contract that I’ve entered into,”
Senator Johanns says Senator Nelson was right sticking to his guns on this one.
“He correctly pointed out the fallacy of that policy and I think was treated unfairly, personally. We have our disagreements but he is right on this one.”
Senators are once again finalizing details of the bill after Republicans put the brakes on debate. A vote could be a couple of weeks away.