Sen. Tim Johnson, D-South Dakota, is in line to replace the retiring Christopher Dodd as the chairman of the powerful Senate Banking Committee - but unlike Dodd, Johnson is a champion of credit card issuers.
Johnson was the only Senate Democrat to vote against the package of landmark credit card reform laws set to take full effect Feb. 22. The reform was signed into law by President Obama in May.
Johnson’s home state of South Dakota is the location of Citigroup’s credit card operation and the Senator is a staunch supporter of community banks. Dodd, of Connecticut, has fought banks hard on credit card issues, even introducing a credit card rate freeze bill in November that was blocked by Republicans.
Johnson is next in line to take the helm of the Senate banking panel, but there is pressure from progressive Democrats to lift up the third-ranking Democrat, Sen. Jack Reed of Rhode Island, who has a track record of advocating issues on behalf of consumers.
Reed is not going after the position, however, according to a statement from his office.
“Senator Johnson is next in line to assume the chairmanship. He has been an active member of the Banking Committee and an outstanding advocate for the people of South Dakota and Senator Reed looks forward to continuing to work with him,” said Chip Unruh, press secretary to Reed.
In recent years, Johnson intervened with federal regulators on behalf of pay-day lenders. He has urged the Federal Deposit Insurance Corporation to ease the pay-day lending restrictions. He has urged that regulators consider the perspective of the industry.
Johnson’s spokeswoman, Julianne Fisher, has responded to concerns of Johnson’s pro-banking record.
“Sen. Johnson has a long history of supporting strong consumer protections for homeowners, savers, investors, retirees, pensioners and most importantly, those underserved by financial institutions,” Fisher said.
