Delay looms as Wall St bill seen “too big to fail”

Democratic backers of the bill scrambled on Monday to replace a crucial vote of support that was lost when Byrd, 92, passed away, with the bill’s fate turning on the views of a handful of swing-vote senators.

In the give-and-take of securing their support, reform advocates warned the bill could be further watered down.

“If they have to reopen the bill to make concessions to get additional votes … the bill will get weaker, not stronger,” said Barbara Roper, director of investor protection at the Consumer Federation of America, a watchdog group.

The bill is the biggest overhaul of financial regulation since the 1930s and a top priority of President Barack Obama following a severe banking crisis that slammed the economy.

INVESTORS MOVING ON

While Democrats try to nail down enough votes to ensure final passage, investors and analysts were largely assuming the bill would become law.

The KBW Banks index closed down less than 1 percent on Monday in an otherwise largely flat stock market.

Final passage of the bill will alleviate some of the uncertainty that has weighed on bank stocks, but the long implementation period ahead presents many unknowns, said Goldman Sachs financial services industry analysts.

Two of the biggest question marks are appointments Obama must make. One will be the first director of a new Consumer Financial Protection Bureau called for by the bill. It would regulate mortgages, credit cards and other financial products.