'It’s going to get done': Sen. Padilla talks Senate aid package momentum - MSNBC

with Alicia Menendez,host of American Voices

CNN projects Democrats keep control of Senate

President Biden and Vice President Harris Deliver Remarks on Voting Rights

A Moment of Limelight

Saturday evening hundreds of U.S. Senate staff and colleagues gathered on the Capitol steps to honor the late Senator Edward Kennedy.The senators' flag-draped coffin was brought by for a brief ceremony led by House Chaplain Rev.Daniel Coughlin,who described the senator as exhibiting true contemplative leadership.Across the street from the Capitol,members of the public assembled.The U.S. Capitol Police estimated the crowd to be about 1,000 people.As the police paced,the crowd chattered and sometimes laughed,lively despite the tropical heat of Washington in August.
Many of the staffers carried small American flags,or stuck them in their pockets.Several of them wore business suits in spite of the oppressive conditions.At least one staffer sported a Boston Red Sox cap-the late senators' favorite team.It was a rare glimpse of just how many people it takes to run the daily operations of the U.S. Senate.Representative Patrick Kennedy(D-Rhode Island),Senator Kennedy's son,told the staffers his father would be very proud to see you all out here today,and I thank you on behalf of my family.After a few prayers and patriotic songs,the cortege moved on to Arlington National Cemetery for a twilight interment,sent off by applause and cheers from the steadfast hard workers.

Focus on Regulatory Reform:The Financial Future

A lot of concern centers on the proposed granting of powers to the Federal Reserve for the monitoring and control of systemic risk.The Fed would have to get Treasury Department approval for spending large amounts of money during crises.At such a time,although Treasury is involved,it is very important that the Federal Reserve preserve its independence and accountability for price stability and stable growth,Treasury Secretary Timothy Geithner told the Senate Banking Committee last week.Central banks around the world have traditionally policed systemic risk.Proposed changes to the Fed's role are modest.The Fed chairman would still be accountable to Congress.Our solutions focus on the central causes of the financial crisis.Conservative constraints on risk-taking will mitigate the too big to fail hazard.There is no conflict between the Fed conducting monetary policy and policing systemic risks,Mr.Geithner said.
A lot of things contributed to this crisis,Mr.Geithner explained.Future crises will require a study of how macroeconomic policy contributed to them.We need to be realistic in recognizing how difficult it will be to anticipate future risks.The critical failure of policy was in not imposing constriction on leverage in the good times.The Fed has a better feel for financial markets than any other government entity.
We're still in the midst of a challenging recession on a global scale,and we want to be able to respond to future risks,so Treasury should retain any money repaid to it by financial institutions,Mr.Geithner asserted at the Senate hearing,wearing a charcoal suit,white shirt and burgundy tie.He seems to be gaining the respect even of Republicans who doubted his suitability for his position.The gravity of the reform process was clearly evident in the atmosphere of the hearing.You could feel the weight of the occasion on everyone's shoulders.Would the Federal Reserve lose its independence under the reforms,or would the Fed be too powerful? No one wants to disturb the delicate balance of the financial regulatory bodies,but the wheels of government are rolling down this path of reform,and there doesn't seem there is any chance of stopping them.

The End or Beginning

The cost of credit has started to ease,Mr.Geithner informed the U.S. Senate.Businesses are finding it easier to raise money in the capital markets.This is all welcome news,but I want to emphasize this is just the beginning.We still face a prolonged repair and adjustment.The combined effect of the programs will help.We're working very closely with the Small Business Administration.Refinancing of commercial real estate is a major challenge.The best thing we can do is 1.provide capital where it is necessary;and 2.have the Federal Reserve extend lending to Commercial Mortgage-Backed Securities,or CMBS.These are two very important steps to take.
About half the AIG risk has been taken down.To be fair,the management of this firm is finding it incredibly difficult to disentangle the businesses.Our options were substantially constrained by the complexities of this firm,Tim Geithner pointed out.Wearing a charcoal suit,white shirt and blue striped tie,the Treasury Secretary maintained his composure and seriousness through the intense exchanges with the demanding senators.

Ratings Agencies Inadequate

The effectiveness of examination of ratings agencies and others needs to be significantly bolstered,Mary Schapiro held.We don't need broken ratings agencies that give us bad information:that much is clear.Until we deal with their compensation model,people are not gonna have confidence in them.They should not be paid by the issuers of the bonds they rate.