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Senate vote on Dodd-Frank rollback pushed to next week

Senate vote on Dodd-Frank rollback pushed to next week
© Greg Nash

The Senate has pushed a final vote on legislation weakening the Dodd-Frank financial reform law until next week after failing to reach a deal on amendment votes.

A spokesman for Senate Majority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellGOP leaders hesitant to challenge Trump on Saudi Arabia Overnight Health Care — Presented by Purdue Pharma — Trump officials ratchet up fight over drug pricing | McConnell says Republicans could try again on ObamaCare repeal | Dems go on offense against GOP lawsuit Republicans should prepare for Nancy Pelosi to wield the gavel MORE (R-Ky.) said Thursday that Republicans and Democrats were unable to agree on which of the more than 100 amendments to the bill would get votes. The Senate will vote on a series of amendments “early next week,” the spokesman said.

The underlying measure is expected to pass with bipartisan support despite opposition from liberal Democrats, and the battle over amendments isn't likely to change the final outcome.

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Democratic critics of the bill have submitted more than 80 amendments that would limit the number and type of banks that would be helped by the bill, stripping out portions they say could cause another financial crisis and adding what they describe as safeguards.

The Senate must also consider a substitute amendment offered by Senate Banking Committee Chairman Mike CrapoMichael (Mike) Dean CrapoLawmakers, Wall Street shrug off Trump's escalating Fed attacks GOP loads up lame-duck agenda as House control teeters Republicans shift course after outside counsel falters MORE (R-Idaho) that would expand the bill's scope.

The replacement language adds several consumer protections sought by Democrats while easing securities laws to woo House Republicans. The additions included several House bills meant to expand financing options for entrepreneurs, along with measures to protect military veterans from fraud and create new student loan backstops and mandate studies on various risks to the financial system.

It also clarifies some of the most controversial parts of the bill that Democrats argue could open the door to laxer rules for the biggest banks.

House Financial Services Committee Chairman Jeb HensarlingThomas (Jeb) Jeb HensarlingOn The Money: Watt's accuser describes sexual harassment claims in stunning testimony | SEC sues Elon Musk for fraud | Mnuchin says GOP hasn’t lost messaging war on taxes Mel Watt's accuser describes sexual harassment claims in stunning testimony House panel invites Watt accuser to testify at Thursday hearing MORE (R-Texas) told reporters Thursday that the manager’s amendment didn’t include enough input from the lower chamber to win him over, however. He’s pushing for the Senate to include roughly 30 bills from his panel that earned bipartisan support.

“We expect them to be in any bill that goes to the president’s desk,” Hensarling said, insisting the Senate bill didn’t reflect the will of the House.

Crapo's substitute amendment includes eight uncontroversial bills from the Financial Services Committee, most of which seek to help business owners raise capital by easing securities laws.

But Hensarling and House conservatives want more input on the Senate bill. The committee circulated a list of 29 bills with bipartisan support that Hensarling wants considered in a compromise package.

“This is a list of bills intended to illustrate the hard work of the House on a bipartisan basis," said Sarah Flaim, a Hensarling spokeswoman. "We’re not making demands on the Senate bill. The Senate has put forth their bill. The House has its bills. It is our expectation that those bills be reconciled through conference — be it formal or informal.”

The coalition of Republicans and Democrats backing the Senate bill have expressed worries about the additional changes demanded by Hensarling.

“There will be tremendous pressure on the House to not sink any kind of compromise,” said Sen. Heidi HeitkampMary (Heidi) Kathryn HeitkampPoll: Dem Donnelly has 4-point lead in Indiana Senate race Election Countdown: O'Rourke goes on the attack | Takeaways from fiery second Texas Senate debate | Heitkamp apologizes for ad misidentifying abuse victims | Trump Jr. to rally for Manchin challenger | Rick Scott leaves trail to deal with hurricane damage Heitkamp: Staffer no longer with campaign after ad naming abuse victims MORE (D-N.D.), a co-sponsor of the Senate bill, on Tuesday.

“This is a moment in time, and I think House leadership understands that.”

Updated at 6:58 p.m. with a new statement from a Hensarling spokeswoman.