Third time no charm for financial overhaul in Senate
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For the third time in as many days, Republicans on Wednesday blocked a Democratic effort to bring a financial regulation overhaul bill to the floor of the Senate.
The Senate fell four votes short of the 60 needed to invoke the procedural move that would have brought the bill to the floor. The final vote was 56-42.
The outcome was hardly a surprise, given continuing Republican opposition and their demonstrated resolve to remain united in the face of Democrats portraying them as acting at behest of greedy Wall Street.
Both sides say they favor a new set of rules to regulate how Wall Street trades complicated financial instruments such as derivatives.
The parties, however, are split over the details and especially over a $50-billion industry-supported fund that would be used to deal with failed financial institutions. The GOP says the fund is an invitation to taxpayer-funded bailouts. They are also divided over how to structure consumer protections.
At this point, the issue has become more political than policy-driven.
With an eye on polls showing that voters overwhelmingly blame Wall Street for the current economic collapse, Democrats have been pushing Republicans to at least allow the bill to the floor where it can be debated and amended.
“I understand they have objections to parts of the bill,” Sen. Christopher Dodd (D-Conn.), the bill’s sponsor, said on the floor Wednesday. “But I can’t work with you on that if you won’t let the bill come to the floor.”
Dodd said he knew the bill was imperfect, as all legislation is at this stage. But he insisted he was prepared to accept changes and welcomed a debate on the issues.
‘We have been through this twice already. I hate to see this partisan debate. It does not reflect well on this institution,” Dodd said.
Republicans argue that the time for negotiating should be before the bill is brought to the floor. They also question the effectiveness of the amendment process as a way to make their points.
Both sides have been talking, but have been unable to reach a compromise.
Any Senate bill would still need to be negotiated with the House, which passed a different version this year.
[Updated, 10:16 a.m.: Before the vote, Majority Leader Harry Reid, of Nevada, expressed intensifying impatience with the negotiations, saying: ‘This is not going to be a soap opera. This negotiation is going to come to an end. ... We’re going to get on the bill.’’
Sen. George Voinovich (R-Ohio) and other moderate Republicans have begun showing signs of being willing – eventually – to jump ship if they become convinced that the negotiations are not bearing fruit.
‘If they are not able to work something out, open it up’ and bring the bill to the floor, Voinovich said. ‘There’s a consensus among all of us that we want something done; we owe it to the American people.’]
-- Janet Hook, reporting from Washington, and Michael Muskal, reporting from Los Angeles
Twitter.com/LATimesmuskal
