In 1930, U.S. officials stood aside as banks failed; the result was the Great Depression. In 2008, they stood aside as Lehman Brothers imploded; within days, credit markets had frozen and we were staring into the economic abyss.

So it’s crucial to avoid disorderly bank collapses, just as it’s crucial to avoid out-of-control urban fires.

Since the 1930s, we’ve had a standard procedure for dealing with failing banks: the Federal Deposit Insurance Corporation has the right to seize a bank that’s on the brink, protecting its depositors while cleaning out the stockholders. In the crisis of 2008, however, it became clear that this procedure wasn’t up to dealing with complex modern financial institutions like Lehman or Citigroup.

So proposed reform legislation gives regulators “resolution authority,” which basically means giving them the ability to deal with the likes of Lehman in much the same way that the F.D.I.C. deals with conventional banks. Who could object to that?

Well, Mr. McConnell is trying. His talking points come straight out of a memo Frank Luntz, the Republican political consultant, circulated in January on how to oppose financial reform. “Frankly,” wrote Mr. Luntz, “the single best way to kill any legislation is to link it to the Big Bank Bailout.” And Mr. McConnell is following those stage directions.

via Op-Ed Columnist – The Fire Next Time – NYTimes.com.

Mitch McConnell’s position makes no sense, and yet he is keeping the troops in line and is opposing regulation that would allow bad Wall Street Banks to fail without pulling our entire economy into a depression. There is no capitalist in the GOP if they don’t support resolution authority. Instead they love corporate welfare. This is a much easier sell than health care, and a populist winner if there was one. Democrats need to push hard on this.

McConnell’s lies at work below:

The votes are already whipped. This seems to be a strategy to delay.

With the Senate working through an all-night session on a package of changes to the Democrats’ sweeping health care legislation, Republicans early Thursday morning identified parliamentary problems with at least two provisions that will require the measure to be sent back to the House for yet another vote, once the Senate adopts it.

via G.O.P. Forces New House Vote on Package of Health Bill Changes – NYTimes.com.

The GOP called for the check Wednesday night, having had enough of the fight over an extension of unemployment benefits that the party had held up for several weeks.

While the Senate was stuck in parliamentary limbo, some 200,000 people actively looking for work lost their unemployment benefits. The bill extends unemployment benefits for an additional 14 weeks across the country, and in some states with the highest unemployment the extension goes to 20 weeks. More on the bill here.

The extension itself was not controversial and passed 98-0. Getting there, however, was a Herculean parliamentary task that provides insight into just how hard it is to pass even popular legislation in the Senate with a minority party intent on opposing the majority’s agenda step by laborious step.

Earlier Wednesday, Senate Majority Leader Harry Reid (D-Nev.) called for the third cloture vote on the bill to break a GOP filibuster. It passed 97-1. (That would be one Jim DeMint (R-S.C.) as the lone Republican to object in public on this round.)

via GOP Folds On Unemployment Benefits Fight: 14-Week Extension Passes.