A proposal that was laid out to lower the rate of interest on the credit cards issued by banks and other financial institutions was vetoed by the Senate.
Sheldon Whitehouse, a Democratic Senator, proposed this amendment to be a part of the financial reform bill being debated in the Senate. Had this amendment been given the nod by the Senate, the credit card issuers would not have had the liberty of implementing the rate of interest permitted by the laws of the state in which they are headquartered.
Earlier this week, the Republicans intensified their attack on the legislation and argued that the bill only worsened the situation and the root cause of the financial meltdown that took place in 2008 was not being addressed by the proposed bill.
As per the Democratic party, said Mitch McConnell, the leader of the Democratic Senate was making use of this chance to expand the site and increase the cost for the government. After a lot of arguments and counter arguments by the Republicans and the Democrats, it came up for the final vote on Wednesday. Though this amendment was reaching its logical conclusion soon, there were many other proposals that are still hanging midway in the Congress.
The proposal that was proposed by Senator Sheldon Whitehouse was being fought against by the banks right from the onset since it would have doubled the work load and made it tough to calculate the interest rates for the consumers.
While this amendment was being debated, there was another proposal too by two another Democrat Senators, Michigan's Carl Levin and Oregon's Jeff Merkley, to prevent commercial banks from indulging in speculative investment trading from their accounts. Financial institutions and banks opposed this bill as well since it would make the existing regulations even tougher.
The Democrats needed 60 votes in their favor for the proposal by Senator Sheldon Whitehouse to be passed. However, that was not to be the case on Wednesday. The Congress was divided 57-42 with the higher number against the bill. It was the crucial votes by three Democrats who voted against the bill that turned tables in favor of the Republicans who did not want the amendment to be passed. One among the three Democrats who changed their decision at the final moment was Harry Lied who leads the Senate majority. He said he made this change for procedural reasons.