Democrats are hoping to reopen the Wall Street reform conference committee today, after a series of GOP objections (and Robert Byrd’s death) put the vote count for the legislation in serious doubt in the Senate. (Late update: The conference committee will reconvene today at 5 p.m.)
Currently, according to multiple aides, House and Senate negotiators are trying to come up with a new way to pay for the legislation. Republican Sens. Scott Brown and Susan Collins have objected to a plan to raise $19 billion over 10 years by imposing a fee on major financial firms. Paygo rules require the bill to be paid for, though, and that means raising money from…somewhere. Ideas being kicked around include dipping into unused TARP funds, and forcing banks to pay higher premiums for FDIC insurance.
That latter option would force even small depository institutions to pay for the cost of regulatory reform. The previous tax would have impacted major institutions only.
Aides were mostly mum about whether Dems were considering using the GOP objections to loop Sen. Maria Cantwell (D-WA) back into the fold. Cantwell, who opposed the Senate legislation, is still undecided about the final bill, but with the conference committee set to reconvene, her vote could theoretically be secured. Democrats are privately steamed that Sen. Scott Brown (D-MA) has vowed to oppose reform over the bank tax, particularly after they worked with him hand in glove to secure a significant loophole in the Volcker rule. Many would no doubt like to see him lose his leverage to a Democrat (like Cantwell) hoping to strengthen the bill. But publicly, Democrats are still trying to keep Brown happy.
According to Jim Manley, spokesman for Senate Majority Leader Harry Reid, “Senator Brown is someone [Reid] can do business with and he hopes to get his vote on these issues in the future.”
One complicating factor: Democrats are running out of time to get a vote on the bill. Today, Senate Majority Whip Dick Durbin told reporters Thursday and Friday are most likely out of play.
“It becomes difficult because at least from I think it’s 10-4 on Thursday, Senator Byrd will lie in state [in the Capitol], and then on Friday there’s a funeral in West Virginia,” Durbin said.
Brian Beutler
Brian Beutler is TPM's senior congressional reporter. Since 2009, he's led coverage of health care reform, Wall Street reform, taxes, the GOP budget, the government shutdown fight, and the debt limit fight. He can be reached at brian@talkingpointsmemo.com.
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