–Senate Republicans Block Motion To Formally Begin Regulatory Debate
–Senate Banking Chief Dodd, Sen. Shelby Resume Talks on Reg Bill
–Obama Calls On Republicans To Put Country Ahead Of Party

By John Shaw

WASHINGTON (MNI) – Senate Republicans banded together Monday
evening and defeated a Democratic motion to formally begin debate on a
financial regulatory reform bill.

The Senate voted 57 to 41 to begin the debate on financial
regulatory reform. Sixty votes were required to begin the debate.

All Republicans who were present voted to block the debate from
going forward. (Two Republican senators did not vote.) All Democrats
voted to begin the debate except for two: Nebraska Senator Ben Nelson
and Senate Majority Leader Harry Reid.

But Reid changed his vote to No only after the outcome was apparent
for procedural reasons. He will now be able to bring the measure up
again for a future vote.

After the vote was announced, Senate Banking Committee Chairman
Chris Dodd and Sen. Richard Shelby left the Senate chamber to resume
negotiations in Dodd’s Banking Committee office.

During the debate, Dodd said that his package is a “good and strong
bill,” but added that he is open to adjustments.

He said Democrats are eager to “get to the debate.”

Senate Minority Leader Mitch McConnell said Democrats are rushing
the legislative process, adding that it makes sense to continue to work
for a bipartisan agreement.

In a statement following the vote, President Obama said how
“deeply disappointed” he is that Republicans voted against allowing a
public debate on Wall Street reform to begin.

“Some of these Senators may believe that this obstruction is a good
political strategy, and others may see delay as an opportunity to take
this debate behind closed doors, where financial industry lobbyists can
water down reform or kill it altogether,” he said.

The President concluded by calling on the Senate to get back to
work and put the interests of the country “ahead of party.”

Both Dodd and Shelby have said they’ve been narrowing their
differences on the legislation, but have not been able to reach an
agreement on a handful of issues.

The Senate Banking Committee approved Dodd’s regulatory reform bill
on March 22 on a party-line 13 to 10 vote. All Democrats supported the
bill and all Republicans opposed it.

Dodd’s legislation establishes a new independent Consumer
Protection Bureau at the Federal Reserve Board, creates a process to
liquidate failed financial firms, sets up a council of regulators to
oversee systemic risk in the economy, establishes a regulatory structure
for over-the-counter derivatives, requires hedge funds that manage over
$100 million to register with the SEC and creates a new office within
Treasury to monitor the insurance industry.

The Senate Agriculture Committee approved a narrower bill last week
that tightens regulation on derivatives. Parts of this bill are
expected to be merged with Dodd’s bill when the formal Senate debate
begins.

The House passed a sweeping financial regulatory reform bill in
December.

President Obama has said that financial regulatory reform is one of
his central goals for the rest of this legislative session.

** Market News International Washington Bureau: (202) 371-2121 **

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