Republic financial reform bill/Legends

"This is a matter not of philosphy. More troops are needed. The Republic cannot afford to let the Separatists gain anymore ground!"

- Senator Gume Saam

In 21 BBY, the Galactic Senate of the Republic debated and voted upon a bill that allowed for the government to open new lines of credit with the InterGalactic Banking Clan. The legislation was a reactionary move which would allow for greater defense spending in order to counter the high death toll afflicting the Grand Army of the Republic in its fight against the Droid Army of the Confederacy of Independent Systems during the Clone Wars. The bill was written and proposed by the Ishi Tib Senator Gume Saam and received wide support, but raised questions regarding the ability of the Republic to receive loans from major galactic financial institutions. As an answer to these questions, Senator Saam included provisions in his bill that would essentially deregulate these institutions, allowing them to grant loans indiscriminately and apply to them high interest rates.

A number of representatives who were well-known for their anti-war stances spoke out against the bill, claiming that taking out more loans and deregulating the banks would ultimately bankrupt the Republic. The deregulation provision was the most heavily debated clause within the bill, but Senators Saam, Lott Dod, and Nix Card were determined to see it pass, particularly as they all either represented or profited from conglomerates like the Banking Clan. The three met their staunchest opposition in the form of Naboo's Senator Padmé Amidala, whose call for peace talks nearly derailed the bill.

Saam, Dod, and Card refused to allow Amidala's peace rhetoric to prevail, and so used their covert association with Confederate Head of State Count Dooku to orchestrate an attack on the Republic capital world of Coruscant. Their plan worked, and following a bombing at the hands of Separatist demolition droids, the Senate approved the military enhancement bill, thereby deregulating the banking system and rejecting the notion of a peaceful resolution to the Clone Wars.

Description
The bill was drafted with the primary purpose of funding the expansion of the Grand Army of the Republic. The legislation accomplished this task by allowing the Galactic Senate of the Republic to open new lines of credit with financial institutions, such as the InterGalactic Banking Clan. It was accepted by both supporters and opponents of the bill that this provision would fundamentally deregulate the major galactic banks.

Motivation for deregulation
"I'm afraid we've been given little choice. To ensure the safety of the Republic, we must deregulate the banks."

- Supreme Chancellor Palpatine

Corporate interests
"With or without Senator Amidala, the Senate is unlikely to deregulate the banks until this war hits home.''" "What, exactly, are you proposing?" "''Perhaps some unexpected bloodshed on Coruscant may change a few minds."

- Senators Nix Card and Lott Dod

Advocates of fiscal conservatism
"Our generals inform us that troops in the field continue to perform valiantly. What we cannot afford is to be irresponsible. The Republic is near bankruptcy due to the cost of this war!"

- Senator Bail Organa

Senator Amidala seeks a separate peace
"Members of the Senate, do you hear yourselves? More money, more clones, more war! Say nothing of fiscal responsibility, what about moral responsibility? Hasn't this war gone on long enough?"

- Senator Padmé Amidala