Dodd Introducing Financial Regulation Legislation

After weeks of intense negotiations with Republican colleagues in an effort to produce a bipartisan financial reform package, Sen. Chris Dodd (D-CT) announced on Thursday that he would end discussions with Republican lawmakers and introduce his own legislation next week.

"It has always been my goal to produce a consensus package. And we have reached a point where bringing the bill to the full committee is the best course of action to achieve that end," Dodd, chairman of the powerful Senate Finance Committee, said in a statement. 

While Dodd said that he would continue his fruitful discussion with Republicans, especially his main negotiating partner, Sen. Bob Corker (R-TN), he also reiterated that as the financial meltdown recedes into the past, the urgency to pass the bill is weakened.

"Clearly, we need to move along . . . as time moves on, it does limit the possibility of getting something done," Dodd told reporters at a press conference, according to The Washington Post.

Dodd may be genuine in his belief that his best opportunity to pass the bill is in the immediate future.  However, it may also be a case of a retiring politician attempting to solidify his legacy.  Facing nearly impossible reelection prospects, Dodd earlier this year announced that he would not run for reelection in November. 

No matter the case, Dodd’s decision to press ahead without firm Republican support could ultimately doom the bill’s chances of passing.  With only 59 Democrats in the Senate, they will need at least one Republican on board in order to defeat an almost certain Republican filibuster. 

Dodd’s announcement could be part of a strategy to shame Republican into voting for the bill.  One of its key aspects, and the most contentious negotiating point, is the proposed creation of a Consumer Financial Protection agency that would regulate businesses that issue consumers credit.  Republicans have been almost uniformly opposed to the creation of the agency, and Democrats are eager to get their opposition on record.   

"We don't want consumer involvement in enforcement," Corker said, summarizing the Republican position. "We don't want rulemaking and enforcement combined."  

The bill would also provide the government with the authority to wind down financial institutions deemed “too big to fail.”  The bill is also expected to cover new corporate governance rules and increased oversight of the derivatives market.

Corker on Thursday blamed Dodd’s decision on Senate Democrats zest to push health care reform through the chamber, pushing other important issues to the wayside.

"Despite the work of the past several weeks, the bill that will be introduced on Monday will unfortunately not be done so in bipartisan way," Corker said in a statement. "Sadly, I fear that in order to pass their health care bill, this administration is willing to crowd out every other important issue our country faces and financial regulatory reform bill may be the latest casualty."