Thirteen Democrats opposed a measure Thursday that would create a $30 billion fund to boost lending to small businesses struggling to get credit.

The bill, backed by three Republicans, passed the House on a 241-182 vote. It is designed to help small businesses hire and expand operations during the economic downturn. 

Opponents of the bill called it "TARP III" and argued the legislation doesn't require banks to lend to small businesses. 

The three Republicans were Reps. Joseph Cao (La.), Mike Castle (Del.) and Walter Jones (N.C.). 

Of the 13 Democrats voting against the bill, nine are members of the Blue Dog Coalition. They include Reps. Marion Berry (Ark.), Allen Boyd (Fla.), Bobby Bright (Ala.), Jim Cooper (Tenn.), Kathy Dahlkemper (Pa.), Harry Mitchell (Ariz.), Stephanie Herseth Sandlin (S.D.), Gene Taylor (Miss.) and Mike Thompson (Calif.). The other four were Reps. Lloyd Doggett (Texas), Chet Edwards (Texas), Jared Polis (Colo.) and Dina Titus (Nev.). 

The $30 billion fund could provide as much as $300 billion in lending to small businesses, according to the Independent Community Bankers of America. 

"The Small Business Lending Fund is a fresh, bold new program that will go a long way toward aiding our nation’s economic recovery in cities and towns throughout America," said ICBA Chairman Jim MacPhee, CEO of Kalamazoo County State Bank in Schoolcraft, Mich., in a statement.

More than 60 House Democrats are pushing for an exemption for auto dealers from new consumer financial protection regulations under the Wall Street overhaul bill.

The House included an exemption when it passed its version of the legislation in December, despite vigorous opposition from the Obama administration. The Senate bill does not include the carve-out from the jurisdiction of the new consumer protection regulator.

But the Senate passed a non-binding motion to support the exemption.

In a letter this week, 62 House Democrats urged lawmakers in the final conference on the bill to include the exemption.

"The House bill recognized that auto dealers are retailers who do not service, fund, or underwrite auto loans, but merely facilitate financing to help their customers purchase a vehicle," the lawmakers wrote. They argue auto dealers would continue to be regulated by the Federal Trade Commission and other federal and state regulators. "We believe the balance achieved in the House bill is an appropriate compromise that will ensure auto dealers can still offer optional dealer-assisted financing while maintaining strong consumer protections."

The letter was organized by New York Reps. Bill Owens and Mike McMahon. Among those signing are Debbie Wasserman Schultz (Fla.), Gary Ackerman (N.Y.), Steve Driehaus (Ohio) and David Wu (Ore.).

The National Automobile Dealers Association has lobbied heavily for the exemption. The White House, Defense Department and Treasury Department have argued against the exemption.

The 43-member conference of lawmakers finalizing the bill is set consider the issue next week.

Nearly 70 percent of all pending FBI mortgage fraud investigations during fiscal 2009 involved dollar losses totaling more than $1 million, according to a report released Thursday.  

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A group of 43 centrist House Democrats urged lawmakers against a controversial Wall Street overhaul provision restricting banks' derivatives trading.

The provision, championed by Senate Agriculture Committee Chairwoman Blanche Lincoln (D-Ark.), is among the most controversial issues remaining in the bill, which lawmakers are finalizing this month. 

The provision would bar banks that receive federal assistance from also trading derivatives. The provision would be phased in over two years and also allow bank holding companies to own swaps desks but only as separately capitalized entities.

The 43 members are part of the 69-member New Democrat Coalition. They argue the provision would increase risk in the financial system and push the multitrillion-dollar market to less regulated entities.

Democrats signing the letter are: Melissa Bean (Ill.), Joseph Crowley (N.Y.), Allyson Schwartz (Pa.), Ron Kind (Wis.), Adam Smith (Wash.), Scott Murphy (N.Y.), Mike McMahon (N.Y.), Jim Himes (Conn.), Artur Davis (Ala.), Jason Altmire (Pa.), Michael Arcuri (N.Y.), Brian Baird (Wash.), Russ Carnahan (Mo.), Chris Carney (Pa.), Andre Carson (Ind.), Gerald Connolly (Va.), Diana DeGette (Colo.), Steve Driehaus (Ohio), Eliot Engel (N.Y.), Bob Etheridge (N.C.), Bill Foster (Ill.), Gabrielle Giffords (Ariz.), Charles Gonzalez (Texas), Debbie Halvorson (Ill.), Jane Harman (Calif.), Jay Inslee (Wash.), Steve Israel (N.Y.), Ron Klein (Fla.), Suzanne Kosmas (Fla.), Frank Kratovil (Md.), Rick Larsen (Wash.), Dan Maffei (N.Y.), Carolyn McCarthy (N.Y.), Kendrick Meek (Fla.), Jim Moran (Va.), Ed Perlmutter (Colo.), Jared Polis (Colo.), Laura Richardson (Calif.), Loretta Sanchez (Calif.), David Scott (Ga.), Joe Sestak (Pa.), Debbie Wasserman Schultz (Fla.) and David Wu (Ore.).

Democrats say Obama's proposed line item veto would be a clear violation of separation of powers.

Several senators who opposed the original tax extender continue to have issues with the package released last night by Senate Finance Chairman Max Baucus (D-Mont.). 

The Senate on Thursday defeated a Republican substitute to the so-called tax extenders bill by a 41-57 vote.

New jobless claims rose unexpectedly by 12,000 last week, reflecting continued weakness in the job market. 

Claims increased to a seasonally adjusted 472,000 for the week ending June 12, the highest level in a month, according to Labor Department figures released Thursday. 

The four-week moving average, which smooths out the volatility of the weekly number, dropped 500 from the previous week's revised average of 464,000. 

The number of people receiving unemployment insurance fell 255,000 to 4.46 million, the lowest level since December 2008. 

Economists argue that jobless claims need to drop into the low 400,000s or high 300,000s to reflect stronger job growth in the private sector. 

The unemployment rate dropped to 9.7 percent in May on the creation of more than 400,000 jobs. But most of those jobs were temporary government jobs for the federal Census, not from the private sector. 

Senate Majority Leader Harry Reid (D-Nev.) apparently does not yet have the 60 votes needed to pass a new extender package introduced last night by Senate Finance Chairman Max Baucus (D-Mont.), according to several sources. 

Centrists like Sens. Olympia Snowe (R-Maine), George Voinovich (R-Ohio), Ben Nelson (D-Neb.) and Joe Lieberman (I-Conn.) continue to be deeply concerned about the bill. Their issues range from the payroll tax on S corporations to the bill adding to the deficit.