Senate fails to end debate on bank reform bill

Reuters via Fidelity.com ^ | May 19, 2010 | Kevin Drawbaugh and Andy Sullivan

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WASHINGTON (Reuters) - In a setback for the Obama administration, Senate Democrats failed to muster enough votes on Wednesday to end debate on the biggest overhaul of financial regulation since the 1930s, delaying a vote on passage.

But analysts still expect the legislation eventually to pass. More debate on amendments was likely, with banks on alert for changes that could threaten their profits.

Senate Democratic Leader Harry Reid scheduled another vote for 2:30 p.m. EDT Thursday.

In the 57 to 42 vote, two Democrats sided against invoking "cloture" to limit debate and move toward final passage. Sixty votes are needed to end debate in the Senate. Two Republicans voted with a majority of Democrats for cloture.

The loss seemed to come as a surprise to Democrats on a measure that enjoys widespread public support.

As backers of the bill scrambled for votes, Democratic Senator Arlen Specter was nowhere to be found one day after he lost a primary challenge in his home state of Pennsylvania.

"I don't have a sense on when he will be back," an aide said.

Reid said one lawmaker had gone back on his word to support the bill. He declined to name the lawmaker, but a Democratic aide said it was Republican Scott Brown, who has backed Democrats on other tight votes.

In a statement, Brown said the bill would hurt businesses in his home state of Massachusetts. A spokesman declined to say whether Brown had previously pledged to support the bill.

The procedural setback mirrored those that took place nearly a month ago, when Republicans prevented the Senate from beginning debate on the bill before eventually giving in.

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In the meantime, Democrats noted that Wall Street is still operating under the same regulations that were in place during the 2007-2009 financial crisis that set off a deep recession.

This bill does nothing to keep the 2007-09 financial crisis from ocurring again. It merely adds another layer of regulation on banks and puts hooks in place for the government to take over "too big to fail" banks.

This bill deserves to die on the vine.

[ABQHispConservative]

Weren’t the rats in charge of congress in 07-09? Funny how the press selectively forgets that. Something the GOP can campaign on. To hell with civility, go all out.

[KoRn]

We don’t enforce existing laws, and people break them.

So make new laws we won’t enforce. Makes perfect sense....

[M-cubed]

if free enterprise has to die.....they can pound that final nail together....lets see how they think??