There's more detail from TPM on Chris Dodd's decision to keep Lincoln's derivatives reforms intact.
A far-reaching proposal to regulate derivative trading will not be scaled back in Wall Street reform legislation, at least for now, multiple Senate aides confirm. The development comes as welcome news to an unusual mix of progressives, financial officials, and at least one conservative Democrat: Sen. Blanche Lincoln (D-AR).
Lincoln is the author of the derivatives title in the Senate's financial regulation bill, and for weeks has faced opposition from Wall Street, the White House, and members of her own party over a provision to force financial firms to spin off their derivatives trading desks into stand-alone entities.
Dodd, in with the tacit consent of Lincoln, drafted weakening language and introduced it last night. It's out the window now, in part because Lincoln is now opposed weakening it--she still needs the populist cred, and because progressive groups raised hell about it. So strong derivative reform has a reprieve, for now.
As Beutler points out in his story, there's still conference for Dem leadership and the White House to weaken the derivatives reform. The House version is weaker, the White House doesn't like Lincoln's provision, Dodd doesn't like it. But here's the thing--it's going to be as potent an issue in, say, Nevada, as in Arkansas. If Dems really want to save their skins (ahem, Harry Reid) with populist voters and to use the "tough on Wall Street" narrative, watering down these reforms isn't a smart way to go.