Nelson Flips On Regulatory Reform After Buffett Provision Removed

Democrats were surprised on Monday evening when Sen. Ben Nelson (D-Neb.) did an abrupt about-face and became the only Democrat to help filibuster legislation to revamp Wall Street regulations.

The removal of a provision that would have dramatically benefited financial tycoon and Nebraska native Warren Buffett, it was said, played a role in the Senator's flip.

"He was on board until today and the only thing that changed was the removal of that provision," said one Democratic aide, who definitively said Nelson changed his vote because the Buffett carveout was removed.

Nelson did not address the language change when talking to reporters immediately after the vote, in which the legislation was stalled, 57 to 41, with 57 senators voting to proceed. Instead, Nelson said he was worried the "legislation will adversely impact Main Street when the focus needs to be on Wall Street. ... I don't think everyone is aware of the unintended consequences."

His office did not immediately return a request for comment from the Huffington Post.

That said, the optics aren't kind to the Nebraska Democrat. Earlier in the day, Senate negotiators agreed to remove a provision that Nelson had inserted last week, which would have exempted any existing derivatives contracts from being subjected to new capital requirements. That provision had been pushed by Buffett's Berkshire Hathaway Inc., which has $63 billion in existing derivatives contracts and would have to set aside $8 billion to cover potential losses on those contracts if the legislation were to pass.

Nelson was hammered mercilessly during the health care debate for withholding his vote until he secured additional Medicaid funding for his home state. If that led to ridicule from Republicans, it stands to reason that holding out for financial help for one of the richest financial tycoons in the world won't go over smoothly either. Nelson should be put on the spot again relatively soon as a Democratic leadership aide told the Huffington Post that the party plans to reintroduce regulatory reform within a matter of days.

"As early as Thursday?" the Huffington Post asked.

"Could be earlier than that," the aide replied.

Comments

[Motik70]

12:05 PM on 04/28/2010

All hail the senator from Buffet land. Nelson and his wife have a shares in Buffet's company.
That said, the optics aren't kind to the Nebraska Democrat. Earlier in the day, Senate negotiators agreed to remove a provision that Nelson had inserted last week, which would have exempted any existing derivatives contracts from being subjected to new capital requirements. That provision had been pushed by Buffett's Berkshire Hathaway Inc., which has $63 billion in existing derivatives contracts and would have to set aside $8 billion to cover potential losses on those contracts if the legislation were to pass.

[Motik70]

12:04 PM on 04/28/2010

All hail Sen. Ben Nelson, the senator from Buffetland!

[Leslie Kitchen]

10:40 AM on 04/28/2010

Who could possilby have voted for Senator Nelson, anyway? In a demoracy we get the governance that we deserve. He aways starts out on the wrong side of every issue, then winds up caving when the going gets tough and his grandstanding has stropped reaping rewards. In addition, he has the worst hair in either house of Congress.

[phylsboutique]

09:49 AM on 04/28/2010

Ben Nelson is just trying to cover up for the Wall Street Bankers contributions he receives! I bet Nebraskans reconsider who they want representing them in the future, especially after the health care fight and now this!

[Bushwhacked]

02:31 AM on 04/28/2010

Shill. Look at all that lawyer money he's taken.

http://www.opensecrets.org/politicians/summary.php?cid=n00005329

http://iv-time.blogspot.com/2010/04/fix-congress-first-lawrence-lessig.html

http://www.fixcongressfirst.org/

https://pol.moveon.org/donate/reboot_monthly.html?bg_id=hpc5&id=19999-17369947-raZ4XEx&t=1

[flibbidy gibbet]

12:37 AM on 04/28/2010

How can I donate to the DNC knowing that arse wholes like Bill Nelson might receive a nickel from me. I would like to see the DNC throw this guy under the bus and move on. This guy guy is the greasiest of the greasies.

[chef151]

07:17 AM on 04/28/2010

Donate to individual races, or donate to other liberal or progressive groups that support the types of policies you do. For me, that would be moveon.org, firedoglake and others who specifically target issues near and dear to progressives hearts.

It's sad, but the fact is that a general dnc contribution will be more likely to flow to conservative dems in tight races, the sad part being that those are the dems who are often conservative blue dogs.

[flibbidy gibbet]

09:43 AM on 04/28/2010

Thanks for the good advice Chef!

I am still disappointed the Dems can't act as a block and use the power we gave them. Well, as I told the DNC on the phone the other day, "You had your chance and you are blowing it; don't ask for more until you get something done."

[1laingirl]

11:31 PM on 04/27/2010

Buffett could probably put up the $8B with his pocket change. People have known for some time that this might happen on derivatives. I'd be surprised if Buffett is not prepared.

[PansyRose]

10:30 PM on 04/27/2010

Nelson represents only his own interest not the people who elected him. How many other Republicans are doing the same.

[CPAwADD]

10:23 PM on 04/27/2010

What an absurd rug that man has on his head. Marv Albert and Dennis Kuicinich think it looks bad.

[Camille21]

10:00 PM on 04/27/2010

Shady as they Come!!! Rachel Maddow just called him out big time. Trying to save himself from losing money on his own stock. What we need, politicians in it to line their own pockets. He's so freaking obvious.

[wmholt]

08:25 PM on 04/27/2010

Can someone please ask him to take off that silly wig and fake nose?

[LPK]

08:14 PM on 04/27/2010

Nelson's wife owns 6 million in Buffet's Berkshire stocks! He should be charged with corruption!

[chef151]

07:18 AM on 04/28/2010

Wow, this is shadier than usual, even for Washington, do you have any links?

[freeus]

07:28 PM on 04/27/2010

Bendover Nelson.

[wallyman]

06:56 PM on 04/27/2010

Man, this Nelson is a slimeball.

[plaidsportcoat]

06:32 PM on 04/27/2010

...because Warren Buffett is worth more to Ben than a passel of regular folk

[Camille21]

10:01 PM on 04/27/2010

i am so through with him.