Centrist N.Y. Dem says he will oppose Wall Street bill if derivative plan remains

A centrist New York Democrat said Thursday he will vote against the financial regulatory reform bill if the current derivatives language is not altered. 

The report comes amid tensions between the Senate and a cadre of House Democrats that are wary of the strict language included in the Senate's bill by Blanche Lincoln (D-Ark.) 

Rep. Mike McMahon (D-N.Y.), who represents a traditionally Republican district and voted against the healthcare bill, appears to be the first House Democrat to publicly say he will vote against the bill because of the language. He told the Wall Street Journal:

“It would be impossible for me to vote for a bill that contains that provision,” he said.

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“This may cause the whole bill to fail,” McMahon said. He said there needed to be new regulation of derivatives but “we’re not going to force the whole industry to go to Singapore and Zurich.”

The Journal notes the bill passed by a 21-vote margin in the House last time around, meaning only 11 congressmen would need to switch from a yes vote to a no vote to derail the bill. 

House and Senate leaders are looking to conclude work on the bill in conference soon and hope to send it to President Barack Obama's desk before the July 4 recess. 

But it remains unclear how many Democrats will oppose the bill in the end if the derivatives language is not changed. Sen. Judd Gregg (R-N.H.) said earlier Thursday that major language in the bill probably won't be altered. 

House Democrats opposed to the derivatives language plan to convene and meet with Lincoln this week.