Finance Bill's Fate Uncertain in Senate

Finance Bill's Fate Uncertain in Senate
By VICTORIA MCGRANE And COREY BOLES

WASHINGTON—The most sweeping overhaul of financial regulations since the 1930s is on a knife's edge as Democrats scramble to secure the Senate votes needed to pass the legislation.

The death of Sen. Robert Byrd (D., W.Va.) robs Democrats of a vote to push the bill toward final passage. Another Democratic senator, who voted against an earlier version of the legislation, said Monday he wouldn't support the final product either. And the late addition of a fee on banks and hedge funds to cover the cost of the legislation is roiling the few Republicans thought likely to vote for the package.

Democrats need to retain the remaining 57 Democratic and Independent senators and also win over at least three Republicans to meet the key 60-vote threshold needed to pass the bill. As of Monday, no Republican had committed to voting for the legislation.

Sen. Christopher Dodd of Connecticut, who's charged with guiding the legislation through the Senate, said he "always" worries about having enough votes, but declined to answer further questions. "Let me do my work," he said, before heading off to meet with Sen. Olympia Snowe, one of the Maine Republicans open to voting with Democrats.

Ms. Snowe was one of three Republicans who voiced disquiet about the fee, which could total $17.9 billion, according to a Congressional Budget Office estimate. Before her meeting with Mr. Dodd, Ms. Snowe said Monday she was concerned it wasn't debated in either House or Senate before being added in the conference committee that merged the two bills produced by Congress.

"You have to look at the entirety of the legislation," she said. "Obviously, its important to have financial regulatory reform."

Sen. Scott Brown (R., Mass.), who voted yes when the Senate passed its bill in May, reiterated his reservations about the final product because of the fee. "I've said repeatedly that I cannot support any bill that raises taxes." Sen. Susan Collins of Maine, calling herself undecided, said there was "much in this bill to like" but like Mr. Brown, she voiced concern about the fee "slipped in during the late hours."

Rep. Barney Frank of Massachusetts, Chairman of the House Financial Services Committee, defended the addition, charging that none of the undecided members had offered alternatives. "What are we going to do, hold out a money basket?" he said.

In addition to losing the vote of Mr. Byrd, Democrats could also discount Sen. Russ Feingold (D., Wis.), who Monday said he wouldn't vote to advance the bill because it wasn't tough enough.

Others sounded noncommittal. "I don't know," said Sen. Evan Bayh of Indiana Monday when asked whether he would support a vote to break a filibuster, adding that he had yet to read the entire bill and still needed to review it.

Senate Democrats hoped to hold the final vote this week to send the bill to President Barack Obama before the July 4 recess. Now, the vote could get pushed after the break, giving critics in the GOP time to pressure Republicans who were leaning toward supporting the bill.

An aide to Senate Majority Leader Harry Reid said the Senate would wait until the House passes the bill before considering its timing. House Democrats hope to vote this week, most likely Wednesday, and a yes vote is widely expected.

In the Senate, however, another potential complication revolves around the timing of Mr. Byrd's funeral and whether he will lie in state in the Capitol, which could delay any vote.

It's not clear when Mr. Byrd's vacant seat will be filled. The West Virginia Secretary of State Natalie E. Tennant said Monday there are a number of sections of the state's law to be considered before a decision could be made.

Gov. Joe Manchin (D, W.Va.) has the authority to appoint a successor to serve out Mr. Byrd's ninth term, which expires in January 2013. It is unlikely he would fill the vacancy this week and Monday ruled out appointing himself.

The other Republican senator to vote "yes" on an early version of the bill was Sen. Charles Grassley, whose office didn't return calls seeking comment.