GOP blocks financial bill again

WASHINGTON (AP) — Senate Republicans, attacked for twice blocking legislation to rein in Wall Street, floated a partial alternative proposal today and said it could lead to election-year compromise on an issue that commands strong public support.

The 20-page outline would prohibit the use of taxpayer funds to bail out failing financial giants of the future and impose federal regulation on many but not all trades of complex investments known as derivatives.

It also calls for consumer protections that appear weaker than Democrats and the White House seek, and it would create new regulations on mortgage giants Fannie Mae and Freddie Mac.

The outline surfaced shortly before Senate Republicans united for the second straight day to block action on White House-backed legislation designed to prevent any recurrence of the ills that led to the economic calamity of 2008. The 57-41 vote left the measure three shy of the 60 needed to advance.

Senate Majority Leader Harry Reid, D-Nev., said he would hold additional votes later in the week, and he and other Democrats have spent days accusing Republicans of doing the bidding of the big financial firms on Wall Street.