WASHINGTON — Cast this debate as big banks against big government.
Despite lingering public anger at Wall Street, most congressional Republicans oppose the tougher financial regulations that Congress is expected to send to President Barack Obama this week.
The GOP is betting that the bill’s ambitious goals will be lost on voters and instead feed an election-year narrative that Democrats stand for bigger, more intrusive government.
Republicans are throwing up a final procedural roadblock today. The sweeping regulatory overhaul is expected to make it through with the minimum of 60 votes. Three Republicans have voiced their support.
Not too long ago, senators from both parties imagined a bill with broad bipartisan support that reflected a consensus that the financial sector needed a new set of rules. These days, though, Republicans liken the legislation to Obama’s health care legislation and the $862 billion economic-stimulus package — two initiatives that have not rallied public support.
“There’s a lot of fatigue on the part of the American people with regard to what they see as an overly aggressive power grab on so many different fronts,” said Sen. John Cornyn of Texas, the head of the National Republican Senatorial Committee.
The bill still bears Republican fingerprints. Senate Banking Committee chairman Chris Dodd negotiated several provisions with key committee Republicans such as Richard Shelby of Alabama and Bob Corker of Tennessee. Neither, though, intends to vote for the bill.
Three Republicans voted for the bill last month in the House. In the Senate, Olympia Snowe and Susan Collins of Maine and Scott Brown of Massachusetts are the only Republicans to announce their support.
On Wednesday, Republican Sen. Charles Grassley of Iowa, who had voted for the Senate version of the bill in May, said he would oppose the final legislation. He said Senate negotiations last month with the House diluted provisions he had supported, including restrictions on certain securities trades by banks and on the selection of risk-rating agencies.
While passage would be a major achievement for Obama, Dodd concedes the public must be convinced it works to the benefit of average Americans.
“We’ve got a marketing job to explain exactly what we’ve done, to get out and talk about it, not just in a political context but why it’s valuable,” he said.
