GOP's Gregg, Corker predict financial regulation bill will pass in 2010

GOP's Gregg, Corker predict financial regulation bill will pass in 2010
By Brady Dennis
Copyright by The Washington Post
Wednesday, March 24, 2010; 12:25 PM
http://www.washingtonpost.com/wp-dyn/content/article/2010/03/24/AR2010032401456.html?hpid=topnews


Two key Republicans on the Senate banking committee forecast Wednesday that legislation to revamp the nation's financial regulations would pass Congress this year, even as they expressed serious reservations about a bill pending in the Senate.

Sens. Judd Gregg (R-N.H.) and Bob Corker (R-Tenn.), speaking at the U.S. Chamber of Commerce, assailed elements of a bill written by Sen. Christopher J. Dodd (D-Conn.) that passed the banking committee this week along party lines.

But after their speeches, both men said some form of legislation is likely to succeed this year. Gregg said he felt 100 percent confident that a bill will pass. Added Corker, "I find it very difficult to see a scenario where financial regulation doesn't pass the Senate."

The question is what shape the legislation will take. Widespread agreement exists on the need to prevent government bailouts and to create a mechanism to effectively monitor for risks to the financial system. But key differences remain on the details of such policies as well as on philosophical questions about how best to protect consumers from abusive and deceptive lending practices.

Corker said Wednesday that Republicans made a "very, very large mistake" and a "major strategic error" this week when they refused to take up the hundreds of amendments they originally had offered to Dodd's bill, prompting the partisan committee vote and setting up a battle over the details of the legislation as it heads to the Senate floor.

"It is going to be far more difficult to end up with a financial regulatory bill that seeks the middle ground and will stand the test of time," Corker said.

Meanwhile, President Obama met for about 45 minutes Wednesday morning to discuss the state of the financial overhaul with Dodd and Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee. Afterward, Dodd said he will work to harmonize his bill with the one Frank shepherded through the House last year as he continues to seek vital Republican support in the Senate.

Republicans are set to meet Wednesday afternoon with the banking committee's ranking member, Sen. Richard C. Shelby (Ala.), who is again negotiating with Dodd on the legislation after past attempts ended in impasse.