–Key Senate Democratic Says Changes May Be Needed To Get 60 Votes
–Sen. Reid Aide: ‘Difficult But Still Possible’ To Pass Reg This Week
–Senate Majority Leader Aide Says No Final Decision Made on Reg Bill
By John Shaw
WASHINGTON (MNI) – Senate Agriculture Committee Blanche Lincoln, a
key player on financial regulatory reform, said Tuesday it’s a
“possibility” that the compromise reform package will have to be refined
in order to win passage in Congress.
In comments to reporters after a Senate Democratic policy luncheon,
Lincoln said that no final decisions have been made about revising the
accord that was reached Friday morning.
She added that Democratic leader are focused on securing the votes
needed to pass the bill.
“I think we need to get to 60 votes,” Lincoln said.
There appears to be a growing sentiment on Capitol Hill that the
sweeping financial regulatory reform bill will have to be revised to
come up with a different funding mechanism to pay for it.
As the House-Senate conference committee was winding down Friday
morning, Senate Banking Committee Chairman Chris Dodd and House
Financial Services Committee Chairman Barney Frank offered a $22 billion
package of offsets to pay for the cost of the bill over a decade as
estimated by the Congressional Budget Office.
Under their plan, about $19 billion over five years would be raised
through assessments on large financial institutions and hedge funds.
Firms with assets of $50 billion or more and hedge funds managing assets
over $10 billion would have to pay into the fund.
This was added, the lawmakers said, to avoid any budgetary points
of order that could derail the legislation.
However, that funding package has been cited by several Senate
Republican senators as the reason they are reassessing their support for
the final bill. Four Senate Republicans voted for the Senate’s
regulatory reform bill in late May.
One Republican senator, Scott Brown, has said he now will oppose
the regulatory reform package because of the inclusion of the $19
billion fee.
Two other Republican senators, Susan Collins and Olympia Snowe of
Maine, have indicated they are displeased with the $19 billion fee and
are rethinking their support of the bill.
Democratic leaders in the House and Senate have been hoping to pass
sweeping financial regulatory reform legislation this week.
However the death of Democratic senator Robert Byrd and the
uncertain voting positions of these Republican senators are complicating
the timing of what is expected to be a close Senate vote.
Jim Manley, an aide to Senate Majority Leader Harry Reid, told
reporters Tuesday that it will be “difficult but not impossible” for the
Senate to pass the regulatory reform bill this week.
Manley said no decision has been made on whether the regulatory
reform bill will be altered.
Democratic leaders must decide if they should try to push the
current package through the House and Senate this week, delay the vote
until Byrd’s successor is sworn in, or revise the package with a
different array of offsets.
The House-Senate conference committee approved Friday legislation
which would make the most sweeping changes to the U.S. regulatory system
since the Great Depression.
** Market News International Washington Bureau: (202) 371-2121 **
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