Senate Majority Leader Harry Reid (D-Nev.) postponed a key test vote on the Wall Street reform bill Wednesday as he attempted to wrangle support from Democrats who were protesting their inability to secure votes on amendments.
Reid ordered the Senate into recess until 3:15 p.m. while Democrats huddled in a special caucus meeting to work out an amendment strategy. The Senate had been scheduled to vote at 2 p.m. to cut off debate on the bill and move it to final passage. It is unclear when the Senate will move forward with that key test vote.
Reid told reporters he expected to call the vote “pretty soon” and predicted he would be able to muster the 60 votes to cut off debate. “We should be OK” on the vote count, Reid said.
But Reid’s inability to hold the cloture vote as scheduled signaled that he was having trouble corralling the last few Democrats and convincing a few Republicans to break with their party.
Republicans were able to throw the vote into doubt by blocking amendments that some Democratic senators described as necessary in order to vote for cloture. Democrats responded angrily in floor speeches, accusing the GOP of carrying Wall Street’s water by obstructing the votes.
But Democrats proved to be among Reid’s biggest obstacles, as members of his caucus demanded votes on their amendments before agreeing to shut off debate. After a cloture vote, only pending amendments deemed germane by the parliamentarian can receive votes.
Sens. Jeff Merkley (D-Ore.) and Carl Levin (D-Mich.) pushed through the early afternoon for a vote on their “Volcker Rule” amendment, toughening rules that would prevent banks from trading on their accounts – a practice that contributed to the 2008 economic crisis.
At one point, Levin held up floor action by objecting to a unanimous consent request by Senate Banking Committee Chairman Chris Dodd (D-Conn.) to hold votes on a list of amendments that did not include his own. Levin eventually withdrew his objection.
Sen. Maria Cantwell (D-Wash.) said she is among the senators refusing to vote for cloture until more amendments are considered. She wants a loophole closed that she says would exempt derivatives trades from being cleared.
And the absence of Sen. Arlen Specter of Pennsylvania – defeated in his Democratic primary bid for a sixth term Tuesday night – could deny Reid a vote he needs to cut off debate.
At least one Republican, Sen. Susan Collins of Maine, will vote yes on cutting off debate, her spokesman told POLITICO Wednesday morning. That makes her the first GOP senator to publicly break with her party on the crucial vote.
And two Democrats previously considered on the fence – Sen .Ben Nelson of Nebraska and Sen. Byron Dorgan of North Dakota – now say they’ll vote yes.
"The bill is not as strong as I would like it to see it but I would vote for cloture,” Dorgan said.
Reid had said Tuesday that "a number" of Republican senators told him they would vote to cut off debate, and Republican aides said they felt Democrats would be able to swing enough votes to move to the next procedural phase of the bill.
Yet aside from Collins, very few GOP senators have stated publicly their support for cloture while several Democrats are saying they can’t vote yes on cloture yet.
With this understanding, Reid emphasized the productivity of a late-night session as well as added an hour of morning business to give senators the opportunity both to air their grievances and review a consent agreement arrived at last night between the two parties.
"I would hope that senators would allow the agreement to go forward," Reid said on the floor Wednesday. "I think if people look at what's in it, I think there is a series of amendments that will be accepted by the two managers of the bill. If someone doesn't like something in that consent, be sure to talk to the two managers."
Even as the Senate moves ahead on some amendments, Sen. Blanche Lincoln's proposal forcing banks to spin off their derivatives operations remains safe — for now.
Senate Banking Chairman Chris Dodd (D-Conn.) has decided not offer an amendment gutting the provision by delaying implementation for two years while a study is completed., said his spokeswoman Kirstin Brost.
The banking industry pushed back hard against the Dodd compromise, saying it might be worse than Lincoln's proposal. Learning of the proposal while fighting for the Democratic nomination in Arkansas, Lincoln issued a statement vowing to fight the measure.
One of the notable amendments included in the agreement is to be offered by Cantwell and John McCain (R-Ariz.) on reviving the Depression Era Glass-Steagall rules designed to control speculation and impose stricter limitations on banks. Cantwell reportedly was holding out a "yes" vote on cloture unless her amendment was considered.
Top negotiators Dodd and Richard Shelby (R-Ala.) worked on the floor late Tuesday night trying to wrap up the legislation Reid has demanded be completed by the end of this week.
But for the consecutive second day, the majority leader — perhaps in a small concession to Republicans and Democrats reluctant to end debate Wednesday — brought up the potential for significant changes to the legislation in conference as another reason to finish the bill this week.
The formal meeting between House and Senate members and officials to iron out differences between the two chambers' bills has been viewed by some Republicans, including Shelby and Bob Corker of Tennessee, as their last chance to get their changes into the financial overhaul bill, particularly provisions on controversial derivatives language.
Reid said Wednesday that the conference would give senators "the adequate protection that they want" in voting for cloture and knowing they ultimately can be satisfied with the final bill that goes to President Barack Obama's desk.
"We have another step that we have to go through, and that's conference. People have all kinds of opportunities there to make whatever decisions they think is appropriate to have this bill better. It gives both sides all the adequate protection that they want when the bill comes back in its conference form," Reid said.
Republicans, though, could be hesitant to pull the trigger on "yes" votes for cloture, as Reid's language Wednesday about making changes post-passage echoed his message to GOP senators in asking them to end negotiations between Dodd and Shelby and open formal debate.
Since that time nearly one month ago, some key Republicans like Corker and Judd Gregg of New Hampshire have been unhappy with the direction of the legislation.
Minority Leader Mitch McConnell (R-Ky.) expressed his dismay with the Democrats way forward with a bill he repeatedly has claimed his party wanted to support.
“At the outset of this debate, Republicans argued that getting onto the bill would be a mistake since Democrats had no intention of improving it," McConnell said on the floor Wednesday.
"As it turns out, we were right. Not only does the bill still contain a massive new government agency with broad new powers over consumer spending and Main Street businesses, it does nothing, as I indicated, to rein in Fannie Mae and Freddie Mac, the main protagonists in the financial meltdown. This is worse than irresponsible; it’s the legislative equivalent of wrongful conviction."
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