Yesterday, Tim wrote that one of the benefits of Lt. Gov. Bill Halter's primary challenge to Sen. Blanche Lincoln was that we got stronger derivatives regulations in the financial reform bill than we might have otherwise. That Lincoln might be pulling a bait and switch, tempting voters with this seemingly tough stand that's almost certain to be weakened, is a big criticism of Halter's.
Now that Lincoln and Halter will face a runoff in June, Sen. Chris Dodd's proposal to weaken Lincoln's proposal has been tabled, at least for now. Lincoln's proposal would separate derivative operations from banks, and Dodd would have postponed the inaction of that idea. As Tim wrote, aspects of Lincoln's bill are certain to be less tough once they make it through the Senate, but right now it's a political plus for Lincoln. And, if it ultimately changes the way financial reform is debated and enacted, it's a win for progressives as well.
-- Monica Potts
