The passing of Sen. Robert Byrd, the longtime West Virginia Democrat, could throw a wrench into the party's plans to pass the landmark overhaul bill by July 4 and hand President Obama a key election-year victory.
The Senate will begin voting on amendments to the financial reform bill Tuesday. The bill would create a new consumer protection watchdog within the Federal Reserve; increase bank supervision; and end "too big to fail" bailouts.
Dodd's soon-to-be-unveiled proposal appears to have a fatal flaw: It enshrines the notion that it's good to have banks that are Too Big to Fail (TBTF). It'll likely propose an alphabet soup of regulators who'll be infighting too much to notice when a giant bank is about to blow.