G.O.P. Blocks Debate on Financial Oversight Bill

From the New York Times:

Senate Republicans, united in opposition to the Democrats’ legislation to tighten regulation of the financial system, voted on Monday to block the bill from reaching the floor for debate. As both sides dug in, the battle has huge ramifications for the economy and for their political prospects in this year’s midterm elections.

Republicans said they were intent on winning substantive changes to the bill and accused the Democrats of rushing the most far-reaching overhaul of the financial regulatory system since the Great Depression. Both sides say they expect the overhaul eventually will be approved.

Democrats charged that Republicans were leaving the country at risk of another financial calamity and siding with wealthy corporate interests. The chief executive of one such firm, Goldman Sachs, the Wall Street powerhouse accused of fraud by federal regulators, is to testify Tuesday before a Senate committee.

Sensing political momentum at a time of deep public anger at Wall Street, Democratic leaders said they would keep the regulatory bill on the floor — and delay the rest of their busy legislative agenda — to ratchet up the pressure on the Republicans.

For a good roundup of political analysis on the financial reform battle, see this post on the Wall Street Journal's Washington Wire. As usual, the latest news bulletins can be found on the TalkingPointsMemo Financial Reform Wire.

Poll Shows Most Americans Support Stricter Financial Regulation

From the Washington Post:

About two-thirds of Americans support stricter regulations on the way banks and other financial institutions conduct their business, according to a new Washington Post-ABC News poll.

Majorities also back two main components of legislation congressional Democrats plan to bring to a vote in the Senate this week: greater federal oversight of consumer loans and a company-paid fund that would cover the costs of dismantling failed firms that put the broader economy at risk.

A third pillar of the reform effort draws a more even split: 43 percent support federal regulation of the derivatives market; 41 percent are opposed. Nearly one in five - 17 percent - express no opinion on this complicated topic.

President Obama, who traveled to New York last week to deliver his case for sweeping changes to the financial system gets an even-up review of his performance on the issue, with 48 percent of those polled approving of his handling of financial regulation and 48 percent disapproving.

But compared with congressional Republicans, Obama has a clear advantage. A slim majority - 52 percent - of all Americans says they trust Obama over the GOP on the issue, while 35 percent favor the Republicans in Congress. Independents prefer Obama 47 to 35 percent, with 16 percent trusting neither side on the issue.

An Interview with Senator Dodd

In the Washington Post, Ezra Klein has a fascinating interview with Senate Banking Committee Chairman Christopher Dodd (D-Conn.), in which they discuss the causes of the financial crisis, how close the system came to a total meltdown, and how the Senate bill seeks to reimpose regulation on Wall Street.

Democrats, Pressuring G.O.P., Unite on Finance Bill

From the New York Times:

Senate Democrats said Sunday that they had bridged internal party differences and coalesced around a plan to tighten regulation of derivatives, the complex financial instruments that were a major factor in the 2008 economic crisis.

The proposed derivatives rules are an important part of the effort to strengthen regulation of the nation’s financial system, and seem certain to anger some of Wall Street’s biggest players.

The agreement among Democrats would combine overlapping proposals on derivatives by the banking and agriculture committees, and it raised the pressure on Senate Republicans, who said that they were still fighting for changes to the bill and planned to block the start of floor debate in a first procedural vote on Monday.

For more on this afternoon's showdown over financial reform, see this item from the Times's Caucus blog and this story from The Washington Post. TalkingPointsMemo will be following all of the day's developments on its Financial Reform Wire.

Financial Reform Deal: Close But No Cigar (Yet)

TalkingPointsMemo reports:

Despite round-the-clock talks between Sen. Chris Dodd and Sen. Richard Shelby there's no bipartisan deal on financial regulatory reform, but leaders on both sides said Sunday they are hopeful they can come together.

In a sharp contrast from the rancorous tone on last week's Sunday shows, Republicans and Democrats alike said today there is good momentum to agree on legislation soon, even though everyone agreed they aren't there "yet."

Sens. Schumer and McConnell Go Head-to-Head in Filibuster Reform Fight

From The Hill:

Senate Rules Committee Chairman Charles Schumer (D-N.Y.) and Republican Leader Mitch McConnell (Ky.) on Thursday launched a high-profile fight in a committee hearing on changing the Senate's filibuster rules.

Schumer opened a scheduled hearing on the 200-year history of the legislative tactic by serving notice that he intends to strongly consider some kind of change to the chamber's rules in order to prevent legislation continuing to be blocked by small numbers of senators.

"The filibuster used to be the exception to the rule. In today’s Senate, it’s becoming a straightjacket," Schumer said. "The truth is, both parties have had a love-hate relationship with the filibuster, depending on if you are in the majority or the minority at the time. But this is not healthy for the Senate as an institution."

McConnell was resistant, saying that Democrats are simply frustrated they cannot amass 60 votes to move legislation, and blaming Majority Leader Harry Reid (D-Nev.) for the situation by blocking Republicans from offering amendments.

“I submit that the effort to change the rules is not about democracy. It is not about doing what a majority of the American people want. It is about power,” McConnell said.

For more on the issue of Senate reform, see this post from Washington Monthly.

Democratic Governor Vetoes Two Oklahoma Abortion Bills

The Associated Press reports:

Oklahoma Gov. Brad Henry vetoed two abortion bills Friday that he said are an unconstitutional attempt by the Legislature to insert government into the private lives and decisions of citizens.

One measure would have required women to undergo an intrusive ultrasound and listen to a detailed description of the fetus before getting abortions. Henry said that legislation is flawed because it does not allow rape and incest victims to be exempted.

Lawmakers who supported the vetoed measures promised an override vote in the House and Senate as early as next week. A national abortion rights group has said the ultrasound bill would have been among the strictest anti-abortion measures in the country if it had been signed into law.