Progressive groups are working to get Russ Feingold engaged in the Wall Street reform conference negotiations, in hopes that he can counter the influence of Scott Brown. Feingold voted against the Senate package, arguing that the bill wasn't tough enough on Wall Street. TPM's Brian Beutler reports on the efforts of two organizations trying to get Feingold to use his opposition to give reformers in the conference committee leverage.
Americans for Financial Reform and the Progressive Change Campaign Committee are separately pushing Feingold to reconsider his vote provided two key provisions, strengthening the bill survives. PCCC members are petitioning Feingold to say that he'll vote yes, if and only if tough derivatives regulations remain in the legislation, and negotiators add a strong version of the so-called Volcker rule to the bill.
"Some senator will be the deciding vote on this bill -- will it be a Republican who wants less Wall Street accountability or a progressive like Feingold who wants more?" says PCCC co-founder Aaron Swartz. "By saying he would vote yes on the final bill if strong versions of the Lincoln and Volcker Rules are adopted, Feingold could change the dynamics of the negotiations, change history, and score a real victory for Main Street over Wall Street."
Why is Feingold such a pivotal player? As I reported yesterday, reformers and Hill staff are currently contending with the fact that Sen. Scott Brown (R-MA) is the man with the most power over the bill right now. He cast the 60th vote for reform, giving him tremendous leverage which he's been using to push for carve outs in the Volcker rule. (The Volcker rule, named after former Fed Chair Paul Volcker, would put serious restrictions on banks' ability to speculate with their profits.)
There are other moving parts to this negotiation. The New Dems, apparently trying to out Blue Dog the Blue Dogs, have have been circulating a draft letter "proposing to significantly scale back regulations on derivative trading, and open up exceptions to the so-called Volcker rule."
A core group of the New York delegation in the House is also fighting hard against both derivatives reform and a tough Volcker Rule.
The New York delegation may be the most immediate problem. "Those of us in New York represent not only Main Street, but Wall Street, as well, and understand very much that Main Street is affected by Wall Street," Ackerman told HuffPost. "I've spoken to the mayor, and I've taken it on myself to try to rally the troops."
The fact remains, however, that getting to 60 in the Senate is tougher than getting to 217. Feingold is key, and could provide a very strong bargaining chip for Dodd in the conference negotiations on these key provisions, which will be decided next week. But in order for him to provide this help, he has to engage.