Reform Bill Vote Likely to be Postponed

The death of Sen. Robert Byrd, D-W.Va., is likely to postpone a final vote on the sweeping regulation reform bill until the governor of West Virginia appoints a new Democratic senator. The 92- year senator had been ill for some time. But Democratic leaders were counting on Sen. Byrd and a few Republicans to muster the necessary 60 votes to pass the bill. Some key Republicans are having second thoughts about the bill because it includes an assessment on large banks and hedge funds to raise an estimated $19 billion. The bill creates a new resolution process to deal with the failure of large financial institutions, imposes risk retention on mortgage securitizations and creates a consumer protection agency. The assessments would cover the costs of implementing the legislation and two multi-year programs to prevent foreclosures and help municipalities deal with abandoned homes. One program, modeled after a Pennsylvania state program, would receive $1 billion annually to make loans to unemployed homeowners so they can make their mortgage payments. The other $1 billion program would renovate foreclosed homes so they can be rented. The House may vote on final passage of the bill on Tuesday.