Wall Street Reform Stalled Again in Senate

The marathon Senate debate on a bill tightening the regulation of financial markets is likely to roll along for at least several more days as support among Democrats has fractured -- at least temporarily.

Senate Majority Leader Harry Reid had hoped to wrap the bill up this week but he fell three votes short Wednesday on a procedural attempt meant to cut off debate and move toward final passage. Two Democrats, Maria Cantwell of Washington and Russ Feingold of Wisconsin, defected ship even as Reid got help from two moderate Republicans.

Cantwell was apparently miffed because a vote was not allowed to toughen a section of the legislation regulating trading of financial derivatives, the Washington Post reported. Feingold thinks more debate is needed to assure the bill is strong enough to prevent another financial meltdown similar to the collapse of late 2008.

The legislation, now in its third week of debate in the Senate, would rein in some risky trading practices, establish a consumer bureau to protect investors and give government more power to shut down failing financial firms.

Reid blamed the GOP for the setback even though Maine Republican Sens. Olympia Snowe and Susan Collins sided with Democrats on the test vote. Reid said one Republican -- "and I'm not going to be giving any names" -- broke his word after saying he would support the bill. He was apparently referring to Sen. Scott Brown (R-Mass.), who said he feared the bill as written would harm banks and insurance firms in his state. But Brown said his vote was not meant as a final say on the entire legislation. The Democrats, Cantwell and Feingold, also seemed like good bets to eventually back the bill.