The financial regulatory overhaul bill sponsored by Sen. Christopher Dodd, D-Conn., "stalled out" on the Senate floor Monday, according to The Wall Street Journal. Democrats fell just three votes short of beginning debate on the measure.
Key components of the legislation include a new financial agency focused on consumer protection, new rules and procedures for closing failed or failing financial institutions and stiffer regulation of derivatives trading. The bill is designed to prevent a repeat of the conditions leading up to last year's financial crisis, and it represents the most far-reaching financial regulatory overhaul since the years following the Great Depression.
Until Monday, Democrats looked to be on the "fast track to finishing the legislation," the story says. Now, however, Republicans believe they'll be in a better position to negotiate the points on which they're not quite sold. Those include how much power a new "consumer protection" agency should have, and whether banks should be forced to spin off their derivatives trading businesses.
Legislators are expected to vote again Tuesday on beginning debate on the bill. Though it does not yet include a provision exempting non-accelerated filers from Sarbanes-Oxley 404(b) compliance requirements, Sen. James DeMint, R-S.C., has promised to propose an amendment to that includes the exemption.