Financial Reform Watch

Last night's Senate vote on the financial rescue plan, a 74-25 victory, followed the pattern of Monday's House vote. The more conservative and liberal Senators voted against it as well as Senators in tight races. Since only one-third of the Senate must stand for re-election, the third category had much less impact than in the House.

On the House side, there are signs of positive movement on both sides of the aisle. Based on conversations with our contacts on the Hill, we believe as many as 20-25 members who voted against the package on Monday may now support the plan.

For some GOP Members, the raising of the FDIC insurance cap to $ 250,000 and the SEC's action on Tuesday to relax "mark-to-market" accounting rules have provided reasons to re-think their earlier opposition. Members of both parties have an interest in the tax break extenders and the Alternative Minimum Tax patch.

There is a slim chance the House may vote this evening, but a vote tomorrow is more likely.