Bipartisan Duo Moves Ahead on Finance Bill

By MICHAEL R. CRITTENDEN
WSJ

WASHINGTON -- The top Democrat and Republican working on the Senate bill to overhaul regulation of U.S. financial markets outlined the goals they share, and said they hoped to resolve differences on the measure before lawmakers return in January.

Sens. Christopher Dodd (D., Conn.) and Richard Shelby (R., Ala.) issued a joint statement Wednesday saying that discussions in recent weeks between Democrats and Republicans had been "extremely productive."

Mr. Dodd circulated draft legislation several weeks ago, but it immediately ran into opposition from lawmakers on the banking panel, including Mr. Shelby. Mr. Dodd agreed to make changes and to work closely with the Alabama Republican in an effort to reach a deal on the bill, which would be difficult to pass in the Senate without any Republican support. The House passed legislation to overhaul financial regulation Dec. 11, but no Republicans voted for it and more than two dozen Democrats voted against it.

The two lawmakers said they broadly agreed on no longer treating firms as "too big to fail," and on strengthening consumer protections. The latter issue is expected to be an area of contention between Republicans and Democrats, particularly the Obama administration's proposal to create a new Consumer Financial Protection Agency.

(More here. See related: "Banks Bundled Bad Debt, Bet Against It and Won".)