Senate Vote Is Blocked On Financial-Reform Bill

Senate Republicans voted Wednesday to postpone final action on a sweeping bill to overhaul financial regulations.

The vote was 57-42, three votes shy of the 60 needed to pass. Three Democrats joined 39 Republicans voted against the measure. Among them was Senate Majority Leader Harry Reid, who switched his vote from yes on procedural grounds. Sen. Arlen Specter was off the day after he lost a primary for reelection.

Reid said he would seek another vote Thursday on the largest financial regulatory update since the Great Depression.

The law would create a mechanism to manage the risk in the financial system, create a method to settle not big business, and write new rules for complex securities. The securities, known as derivatives, has been blamed for helping precipitate the 2008 economic crisis. The measure also would create a consumer protection agency.

Senate Banking Committee Chairman Christopher J. Dodd, a key supporter of legislative reforms, has decided not to propose a two-year delay of a claim in the bill, banks spin off their derivatives activities of affiliates.

Republicans say the bill does not address the root causes of the crisis.

The Democratic majority, "said Senate Republican leader Mitch McConnell," using this crisis as another opportunity to expand the cost and size and scope of government. "

While the bill is finally on its way to passage vote Wednesday the fate of several controversial amendments. One is a measure letting states impose their interest rate ceilings on financial institutions that issue credit cards in their states. Currently, banks and credit card companies only charge the rate allowed in the country where they are based.

Banks that has flowed to the countries with the most fixed rates, has strongly fought the proposal. Under an agreement with Republicans, the measure will require 60 votes to pass.

Also, Democratic Sens. Jeff Merkley of Oregon, and Carl Levin of Michigan, expects a vote on their proposal to prohibit commercial banks from trading in speculative investments for their own accounts.

Moreover, Reid, who broke with the Democrats was Sens. Russ Feingold of Wisconsin and Maria Cantwell in Washington. Feingold said the bill did not go far enough to rein in Wall Street. Cantwell wants tougher secondary control.

Maine Republican Sens. Susan Collins and Olympia Snowe voted with the Democrats.