OK

This is only a Preview!

You must Publish this diary to make this visible to the public,
or click 'Edit Diary' to make further changes first.

Posting a Diary Entry

Daily Kos welcomes blog articles from readers, known as diaries. The Intro section to a diary should be about three paragraphs long, and is required. The body section is optional, as is the poll, which can have 1 to 15 choices. Descriptive tags are also required to help others find your diary by subject; please don't use "cute" tags.

When you're ready, scroll down below the tags and click Save & Preview. You can edit your diary after it's published by clicking Edit Diary. Polls cannot be edited once they are published.

If this is your first time creating a Diary since the Ajax upgrade, before you enter any text below, please press Ctrl-F5 and then hold down the Shift Key and press your browser's Reload button to refresh its cache with the new script files.

ATTENTION: READ THE RULES.

  1. One diary daily maximum.
  2. Substantive diaries only. If you don't have at least three solid, original paragraphs, you should probably post a comment in an Open Thread.
  3. No repetitive diaries. Take a moment to ensure your topic hasn't been blogged (you can search for Stories and Diaries that already cover this topic), though fresh original analysis is always welcome.
  4. Use the "Body" textbox if your diary entry is longer than three paragraphs.
  5. Any images in your posts must be hosted by an approved image hosting service (one of: imageshack.us, photobucket.com, flickr.com, smugmug.com, allyoucanupload.com, picturetrail.com, mac.com, webshots.com, editgrid.com).
  6. Copying and pasting entire copyrighted works is prohibited. If you do quote something, keep it brief, always provide a link to the original source, and use the <blockquote> tags to clearly identify the quoted material. Violating this rule is grounds for immediate banning.
  7. Be civil. Do not "call out" other users by name in diary titles. Do not use profanity in diary titles. Don't write diaries whose main purpose is to deliberately inflame.
For the complete list of DailyKos diary guidelines, please click here.

Please begin with an informative title:

Folks who were hoping that a lame duck Dodd would be more inclined to push for more aggressive financial regulatory reform should be disappointed to hear that Dodd, who chairs the Senate Banking Committee, is now considering negotiating away creation of a Consumer Financial Protection Agency in an attempt to win over Republican senators.  Actually, all of us should be disappointed.  What's as discouraging as the move is the motivation: Dodd is saying he wants a financial regulatory reform that Richard Shelby, the ranking Republican on the committee, can support.  He's created a team of four Democratic senators and four Republicans to try to hash out a deal.

Does this sound familiar to anyone?  

Intro

You must enter an Intro for your Diary Entry between 300 and 1150 characters long (that's approximately 50-175 words without any html or formatting markup).

Dodd and Shelby seem to be reading from the Max Baucus - Charles Grassley script that consumed the healthcare process in the Senate for long enough that now a special election result in January has the chance to blow up the bill again.  What did they get to show for it?  Olympia Snowe voted the bill out of the Finance Committee but then voted with every other Senate GOPer to declare it unconstitutional.

What's most frustrating about this is that it's just bad negotiating.  Chris Dodd only weakens his position by giving Richard Shelby (and thus Mitch McConnell) a veto over financial regulatory reform.  Republicans have no motivation to help Democrats pass a strong bill regulating the banks - first, because Republicans are in bed with the banks, and second, because Republicans want to keep bashing the Democrats for being in bed with the banks (a strategy which is paying off, judging by the polls in Massachusetts).

Even if the Democrats are desperate for Republican votes (whether to give moderate Democrats cover, to make up for Democratic defections, or to earn a bipartisan aura), the best way to get them is to show you're ready to pass a bill without them.  Then there's a shot a Republican offers to support a weaker version.  The worst strategy to win Republican votes is to try to show how reasonable you are by offering them veto power in exchange for being willing to talk to you.  We call that negotiating against yourself.

And as Matt Yglesias observes, there are worse things that could happen than a Republican filibuster of financial regulatory reform.

Extended (Optional)

Originally posted to Josh Eidelson on Mon Jan 18, 2010 at 07:50 PM PST.

EMAIL TO A FRIEND X
Your Email has been sent.