Finance reform may proceed without GOP

WASHINGTON – Congressional attempts to pass the most sweeping overhaul of financial regulations since the Great Depression suffered a potentially devastating blow Thursday as the lead senator working on the legislation vowed to move forward next week without Republican support.

With the legislative clock ticking and bipartisan talks stalling, Senate Banking Committee Chairman Christopher J. Dodd, D-Conn., said he needed to press ahead without the consensus legislation he has been seeking during weeks of intensive negotiations with Republicans.

“The moment has arrived to put down a proposal,” Dodd said about an overhaul that is a top priority this year for President Barack Obama.

Dodd said he was optimistic of passing a bill this spring that would dramatically restructure the federal regulatory system to avoid a repeat of the financial meltdown that staggered the U.S. and world markets.

But even though bringing a bill before his committee represents progress toward passing legislation this year, Republicans have the votes to stop any legislation in the full Senate if they don’t like it.

“A bipartisan bill is the most likely way to achieve success,” said Scott Talbott, chief lobbyist for the Financial Services Roundtable, which represents large financial companies. “Without bipartisanship, the bill faces an uphill battle.”

Dodd’s attempts to lure Republican support have been unsuccessful. He negotiated for weeks with Sen. Richard C. Shelby, R-Ala., the committee’s top Republican, before reaching an impasse in early February. Dodd then began talks with Sen. Bob Corker, R-Tenn., and their staffs have been working around the clock in recent days to resolve their differences.

Although the talks have been fruitful, Dodd said Thursday “a few outstanding issues remain,” and time is running out for the Senate to deal with a complex bill this year with mid-term elections looming.

Dodd said he would unveil his latest draft of the legislation Monday, which will reflect Corker’s input, and the committee would begin considering it the following week before lawmakers leave Washington for a two-week recess. Dodd promised to continue talks with Republicans in hopes of hammering out a bipartisan agreement.