Battle over particulars delays finance bill

WASHINGTON – Attempts to pass a sweeping overhaul of financial regulations stalled in the Senate Wednesday as a key procedural vote failed because of near-unanimous Republican opposition and concerns from two Democrats – including Maria Cantwell of Washington – that the legislation was not tough enough on Wall Street.

Senate Democratic leaders failed to get the 60 votes needed to end debate on the legislation and bring the sweeping financial reform legislation to a final vote.

The failure caused partisan tensions to flare. But another vote was scheduled for today and key Democrats said they were hopeful they could overcome the procedural hurdle.

The legislation is a top priority of the Obama administration and congressional Democratic leaders.

It would create an independent bureau in the Federal Reserve to protect consumers in the financial marketplace, grant the government power to seize and dismantle teetering firms whose failure would pose a danger to the economy, impanel a council of regulators to monitor the financial system for major risks and impose strict regulations on complex financial derivatives.

More time could help ease concerns from the two Democrats who opposed their party leadership on the vote – Cantwell and Russ Feingold of Wisconsin.

Cantwell wants the full body to vote on two amendments – one to tighten new proposed regulations on complex financial derivatives and another to restore a prohibition against federally insured commercial banks also doing investment banking.

Cantwell said she’s most concerned about getting a vote on her amendment to ensure derivatives do not elude new regulations requiring them to be traded on public exchanges and through central clearinghouses.

“Trading of dark market derivatives is what has brought this challenge to our U.S. economy,” she said. “Let’s bring some transparency into that market.”