GOP Softens Opposition to Wall Street Reform

Brian Beutler and Christina Bellantoni report for Talking Points Memo that Senate Republicans have softened their initial oppositions to Democrats' efforts to regulate Wall Street.

Within 48 hours, the Republican line on financial regulatory reform went from "filibuster" to "we're very close to a deal." Why the shift? Republicans and Democrats will offer up spin all day, chalking up the progress to their own doggedness, but in the end it comes down to a simple reality. Key Republicans, sincere about passing new rules for Wall Street, but intimidated by the notion of blocking financial regulatory reform, let it be known to their leadership that, at some point, they would side with Democrats to break a filibuster. Maybe not on round one, or even round two. But eventually.

This afternoon, entering a Republican caucus meeting, the Republican Deputy Whip John Thune candidly acknowledged that the politics just aren't playing out for the GOP, and that members don't want to take a tough vote against regulating Wall Street.

This is not surprising. I was having a hard time understanding the political gain for the GOP in opposing regulation of Wall Street. Defending Wall Street would alienate the most animated portion of their base (the Tea Party Right) by linking them with radioactive issues like "bailouts."

--Ballard Burgher