WRAPUP 1-Wall St bill could face further delay in Senate

* Final passage might not happen this week

* Backers have yet to lock down needed votes in the Senate

* Senate returns at 2 p.m. (1800 GMT)

By Andy Sullivan

WASHINGTON, July 12 (BestGrowthStock) – The biggest rewrite of U.S.
financial rules since the 1930s could face further delay in
Congress, a congressional aide suggested on Monday, as backers
had yet to secure votes needed to clear a final hurdle.

Senate Democrats have not yet abandoned their hope to give
final congressional approval to the landmark measure this week
and send it on to President Barack Obama to sign into law. They
picked up an important Republican swing vote on Monday.

But with one Democratic seat vacant and other possible
Republican allies tight-lipped after a weeklong break, backers
remained short of the 60 votes needed to clear a procedural
hurdle in the 100-seat chamber.

“It is still possible we could consider it as early as this
week,” said Regan Lachapelle, a spokeswoman for Senate Majority
Leader Harry Reid.

The House of Representatives has already approved the bill,
which imposes a range of tough new restrictions on the industry
in an effort to avoid a repeat of the 2007-2009 financial
crisis.

Passage of the bill would give Democrats a second major
legislative achievement, alongside healthcare reform, to show
voters as they try to minimize Republican gains in elections
this November.

Analysts — and opponents of the bill — expect Reid to
ultimately get his 60 votes.

“It’s a question of when,” Republican Senator Judd Gregg,
an opponent, told CNBC.

Reid can count on 57 Democrats to support the measure, and
Republican Scott Brown said on Monday he expected to vote for
it. Republican Susan Collins has also indicated she is inclined
to support the bill.

Republican Olympia Snowe backed an earlier version and
could provide the 60th vote, though she told Reuters over the
weekend she had not yet made up her mind.

“It’s a big issue, and the most important thing is to make
sure we get it right,” she said at a festival in her home state
of Maine. Republican Charles Grassley is viewed as a less
likely backer.

Grassley has concerns about how the bill is funded,
according to an aide. Snowe has not objected to any specific
provision in the bill.

If both Snowe and Grassley decide to oppose it, Reid would
probably have to wait until West Virginia Governor Joe Manchin
names a successor to temporarily fill the seat of the late
Democratic Senator Robert Byrd.

WAITING ON WEST VIRGINIA

Manchin is expected to appoint a Democrat who would back
the bill, but that might not happen this week while officials
in the state sort out plans to elect a permanent successor.

Manchin plans to delay naming a successor until the state
legislature completes its work, according to a spokesman. That
may take until at least Sunday.

For a FACTBOX on the key players, click on [ID:nN30252924]

Further clarity on the timing of the Senate vote could come
when the Senate reconvenes at 2:00 p.m. (1800 GMT).

Analysts say Snowe would be hard-pressed to justify a “no”
vote at after winning concessions earlier in the process.

The legislation would impose a range of new restrictions on
the financial industry, from increased scrutiny of consumer
loans to limits on their trading activities.

For a FACTBOX on the bill’s main elements, click on
[ID:nN30261311]

The KBW Banks Index (.BKX: ) was down half a percent on
Monday morning, roughly in line with the broader markets. Since
hitting a 2010 high in April, the index has fallen nearly 15
percent as concern grew that the legislation would likely
reduce industry profits.

The industry managed to soften the impact of many of its
harshest provisions during a final all-night negotiating
session, and will have a chance to soften it further over the
coming years as regulators gradually put it into effect.

Lawmakers are also expected to revisit the topic with a
“technical corrections” bill to fix errors in the 2,300-page
bill. That could address questions like whether new
restrictions on the $615 trillion derivatives market would
apply to existing contracts.
(Additional reporting by Rachelle Younglai in Washington and
Sarah Mahoney in Lisbon Falls, Maine; editing by Andrew Hay)

WRAPUP 1-Wall St bill could face further delay in Senate