Senate Republicans successfully used a procedural vote to block the Senate from moving to debate the Dodd financial services reform bill on April 26. The vote was 57-41, so the Democrats did not get the 60 votes they needed to move the bill toward debate. It is expected that Senate Majority Leader Harry Reid (D-Nevada) will immediately file another motion, with a second vote to come up later this week, while Senators Chris Dodd (D-Connecticut) and Richard Shelby (R-Alabama) continue negotiations over the bill. Prior to the April 26 votes, the GOP vowed to introduce an alternative financial services reform bill to the one proposed by Democrats.
Senator Shelby, ranking member on the Senate Banking, Housing, and Urban Affairs Committee, had predicted to David Gregory of NBC’s “Meet the Press” on Sunday, April 25, that the Senate would not approve the cloture vote on April 26, but had also added, “I think we will get a bill.”
The Wall Street Journal, among other news outlets, reported that Senator Christopher Dodd (D-Connecticut), chairman of the Senate Banking Committee, has agreed to include the recent derivatives bill passed April 21 by the Senate Agriculture Committee in his final reform package.
Meanwhile, as the chief executive of Goldman Sachs, Lloyd Blankfein, and David Viniar, Goldman’s CFO, prepare to testify before the Senate Permanent Subcommittee on Investigations on April 27, the Securities and Exchange Commission’s (SEC) Inspector General says he plans to launch an investigation into the timing of the securities regulator’s decision to pursue fraud charges against Goldman.