Moderate Dems to oppose Shelby's finance bill

Moderate Dems to oppose Shelby's finance bill

Moderate Democrats on the Senate Banking Committee are planning to oppose Chairman Richard Shelby's (R-Ala.) financial regulatory proposal during Thursday's markup, dealing the sweeping plan an early and significant blow.

Sources close to Sens. Mark WarnerMark Robert WarnerTrump puts GOP in tough spot with remarks on foreign 'dirt' Trump puts GOP in tough spot with remarks on foreign 'dirt' Hillicon Valley: Tim Cook visits White House | House hearing grapples with deepfake threat | Bill, Melinda Gates launch lobbying group | Tech turns to K-Street in antitrust fight | Lawsuit poses major threat to T-Mobile, Sprint merger MORE (D-Va.), Heidi HeitkampMary (Heidi) Kathryn HeitkampLobbying World Pro-trade group targets Democratic leadership in push for new NAFTA On The Money: Stocks sink on Trump tariff threat | GOP caught off guard by new trade turmoil | Federal deficit grew 38 percent this fiscal year | Banks avoid taking position in Trump, Dem subpoena fight MORE (D-N.D.), Bob MenendezRobert (Bob) MenendezThere is a severe physician shortage and it will only worsen Democrats ask Fed to probe Trump's Deutsche Bank ties Ending the Cyprus arms embargo will increase tensions in the Eastern Mediterranean MORE (D-N.J.) and Jon TesterJonathan (Jon) TesterManchin eyes Senate exit Manchin eyes Senate exit Democrats hope some presidential candidates drop out — and run for Senate  MORE (D-Mont.) each said that the four moderate members of the panel are planning to vote against Shelby's proposal.

A spokesperson for Sen. Joe DonnellyJoseph (Joe) Simon DonnellyConservatives spark threat of bloody GOP primaries Anti-corruption group hits Congress for ignoring K Street, Capitol Hill 'revolving door' K Street giants scoop up coveted ex-lawmakers MORE (D-Ind.), another of the panel's moderates, did not respond to requests for comment.

The moderates' opposition signals that the Senate Banking Committee will likely approve his bill on a party-line vote.

But it also means that Shelby will have a hard time clearing a 60-vote procedural hurdle he'll need if he wants to get a vote on the Senate floor.

Banking Committee aides have suggested that they could attempt to move portions of the bill through the appropriations process.

Sen. Sherrod BrownSherrod Campbell BrownCongress can defend against Russia by outlawing anonymous shell companies Democrats ask Fed to probe Trump's Deutsche Bank ties Democrats ask Fed to probe Trump's Deutsche Bank ties MORE (D-Ohio), the top Democrat on the Banking Committee, introduced legislation with all of the panel's Democrats as co-sponsors. Their bill is a stripped version of Shelby's bill that seeks to provide regulatory relief to small banks while expanding the power of the Consumer Financial Protection Bureau.

"We cannot let a lack of consensus on some issues deter us from passing targeted, bipartisan policies that best support community banks and credit unions which the president could sign immediately," Heitkamp said in a statement.

Shelby's bill is the most aggressive financial regulatory overhaul proposal since the 2010 Dodd-Frank Wall Street reform law. It would ease regulations on smaller banks and credit unions, while also seeking to make structural changes at the Federal Reserve to increase transparency.

The committee has bickered along partisan lines throughout the negotiation process, with Republicans expressing frustration that Brown did not engage in negotiations despite their repeated efforts.

Democrats say Shelby didn't attempt to work with all of the Democrats on the panel. Shelby aides have argued that they were following committee structure in which the chairman negotiates with the ranking member.

Democrats have already attacked Shelby's bill, with the White House dubbing it "worrisome," Brown calling it an effort to "dismantle" parts of Dodd-Frank and Democratic presidential front-runner Hillary ClintonHillary Diane Rodham ClintonYoung Turks founder says Democrats should avoid repeat of 2016 and pick a progressive Young Turks founder says Democrats should avoid repeat of 2016 and pick a progressive Trump highlights polls that showed Clinton beating him by double digits MORE on Tuesday describing it as a Trojan horse designed to roll back financial regulations.