Mitch McConnell's Luntz-inspired obstruction plan might not be holding the GOP together.
Sen. Richard Shelby (R-AL), the ranking member of the Senate Budget Committee who's been in financial reform talks with chairman Chris Dodd, tells TPMDC that an agreement is close at hand.
"We're very close to a deal and there will be a substantial number of Republicans that go along with it," Shelby said.
As if to demonstrate that, Chuck "Death Panels" Grassley broke ranks to approve tougher derivatives rules in the Agriculture Committee, which passed its portion of the bill today, 13-8.
The bill to tighten regulation of derivatives is a crucial component of a larger effort to revamp regulation of the nation’s financial system. The Senate banking committee approved a broader bill last month on a party-line vote of 13 to 10, with Republicans unanimously opposed.
The defection of Mr. Grassley, who is the senior Republican on the Finance Committee and is up for re-election, illustrated the increasingly difficult political position for Republicans in opposing the legislation.
Mr. Grassley did not publicly explain his vote. At one point, during the committee sessions. he said he supported a section of the bill that afforded protection to “whistleblowers” who exposed fraud in the derivatives markets.
But his vote to support the measure underscored the potential political peril in opposing tighter rules for Wall Street, at a time of public frustration over the return of huge earnings and blockbuster bonuses even as unemployment remains high and the economy struggles to recover in much of the country.
The bill written by Lincoln is also likely an outgrowth of her difficult reelection prospects, and a likely result of Bill Halter's primary challenge. Few who have to run for re-election this year want to be on Wall Street's side.
