Sen. Blanche Lincoln (D-AR) is on the Senate floor now touting her tough derivatives provision in the financial reform bill. But there’s more going on here than meets the eye. The key question is: Will the Senate vote on amendments to weaken Lincoln’s provision before next Tuesday’s primary in Arkansas, where she is locked in a close race with Lt. Gov. Bill Halter?
The consensus is that Lincoln’s provision, which surprised everyone as way tougher than expected when it was unveiled last month, will be significantly watered down before all is said and done. Sen. Chris Dodd (D-CT), the Democratic leadership, and the White House are all in favor of a weaker regulatory regimen.
The only question is when Lincoln’s provision is retooled, and it’s now appearing that the vote on any amendments to it will be delayed until after Tuesday’s election to protect Lincoln and not water down her anti-Wall Street message.
(Correction: In its original form, this post incorrectly referred to Lincoln’s provision as an amendment to the bill.)
