–For Second Time, Senate Republicans Block Motion To Begin Debate
–Senate Votes 57 to 41 To Launch Debate; Sixty Votes Needed
–Senate Banking Chief Dodd, Sen. Shelby Continue Talks on Reg Bill

By John Shaw

WASHINGTON (MNI) – Senate Republicans again banded together Tuesday
and rejected 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 are required to begin the debate.

All Republicans who were present voted to block the debate from
going forward. All Democrats voted to begin the debate except for
Nebraska Senator Ben Nelson.

The same motion failed Monday evening on a 57 to 41 vote.

A third Senate vote has been scheduled for Wednesday.

Senate Banking Committee Chairman Chris Dodd and Sen. Richard
Shelby are expected to resume their negotiations later in the evening.

During the debate, Dodd said that his package is a good bill but he
is open to adjustments.

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

Both Dodd and Shelby have said they’ve been narrowing their
differences on the legislation.

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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