Push to left seen ahead of 100th day

Senate Democrats hope to boost President Obama’s credentials among the party’s left wing by advancing several legislative measures in the final stretch of his first 100 days in office.

The forthcoming agenda includes granting bankruptcy judges the power to write down mortgages for homeowners in default and possibly tying war funding to benchmarks that could lead to a speedier withdrawal from Afghanistan.

{mosads}Some liberals have expressed disappointment that Obama has been willing to compromise with Republicans and conservative Democrats on key issues, ranging from the bailouts of multinational banks to the inclusion of the Alternative Minimum Tax patch in the economic stimulus.

Others grumble about Senate Democrats not including reconciliation protection for healthcare reform or a carbon emissions tax in the budget resolution that passed before the April recess.

In the area of foreign policy, some liberals fear that a U.S. troop surge in Afghanistan, a plan crafted with Defense Secretary Robert Gates, a Republican, could devolve into a quagmire.

But critics on the left will approve of the agenda that Senate Majority Leader Harry Reid (D-Nev.) and his aides have sketched out in a mix of public statements and private conversations. The bills under consideration will begin gathering momentum as Congress hits the end of Obama’s first 100 days on April 29.

The Senate this week will take up legislation designed to crack down on mortgage fraud. While the legislation is relatively non-controversial and has the support of senior Republican Sen. Chuck Grassley (Iowa), it will earn points on the left by laying the blame for the housing crisis at the feet of unscrupulous lenders.

While conservatives argue that homeowners who overstretched themselves deserve a hefty portion of the blame, liberal advocates counter that lenders conned many low-income borrowers. (Banking industry lobbyists don’t oppose the bill but say that current laws are adequate to prosecute fraud.)

Reid also wants to take up a railroad antitrust bill that would target “price gouging” freight companies, rhetoric that calls to mind the trust-busting populism that flourished at the turn of the 20th century.

Business lobbyists say a “wave of populism” has swept the Congress, which means various industries may have to swallow bitter pills as President Obama and Democratic leaders try to reshape the economy.

Liberal activists say the goal is to transform the economy from a “borrow and spend” model where the rich get richer to one where the government helps middle-class Americans share more of the wealth.

Bob Borosage, a leading liberal and co-director of the Campaign for America’s Future, said Obama has “laid out a vision and a strategy in detail for moving from a country that borrows and spends to one that saves and invests.”

At the top of Senate Democrats’ list is a banking provision known as “cramdown” that would allow bankruptcy judges to lower the principal amount owed for mortgages in default. Senate Democratic Whip Dick Durbin (Ill.) is in the midst of negotiating a deal with four major banking interests: Wells Fargo, JPMorgan Chase, Bank of America and the Credit Union National Association.

Reid would like to pass housing legislation in the next few weeks with a “cramdown” measure, which banking lobbyists have called a gift to liberal, pro-consumer advocates.

{mosads}“This is part of the liberal, pro-consumers’ agenda, along with credit cards and mortgage reform. The wave of populism that has swept through Congress has made it more probable,” said Scott Talbott, senior vice president of government affairs at the Financial Services Roundtable.

Liberals would like Obama to take a harder tack against banks and on other issues.

“There are a whole range of economists who think [Obama] should be bolder in taking banks in receivership and reorganizing them instead of muddling through,” said Borosage, who added that he is skeptical of the president’s plan for reviving the nation’s banking system.
“We ought to use this crisis, when a large number of banks are insolvent, to reorganize, restructure, reduce the size and re-regulate.”

In the next few weeks, Reid plans to quell some of the ire over the federal banking bailout by targeting a favorite villain of populists: the Wall Street robber baron. More specifically, Reid will address bonuses received by executives at banks that received federal bailout money.

Senate Finance Committee Chairman Max Baucus (D-Mont.) may unveil a bill dealing with executive compensation as soon as this week, said a Democrat familiar with his progress.
The details of the bill are not yet public, but it is said to offer a broader solution than legislation the House passed last month. That bill would tax 90 percent of the bonuses received by highly paid executives at companies receiving significant federal bailout money.

The Senate may also consider legislation funding the war in Afghanistan that would impose benchmarks that could lay the groundwork for a speedier withdrawal of U.S. troops from the escalating conflict. The military spending bill could hit the Senate floor next month.

Several liberal lawmakers are worried the mission may become a quagmire and are second-guessing Obama’s plan to send more soldiers.

“On this issue I have deep reservations,” Rep. James McGovern (D-Mass.) told The Hill. “I get this sinking feeling that we may be getting sucked into something that we won’t be able to get out of.”

Reid supports benchmarks for Afghanistan, according to an aide.