Senate delays reform vote

IN A setback for the Obama administration, Senate Democrats failed to muster enough votes last night to end debate on the biggest overhaul of financial regulation since the 1930s, delaying a vote on its passage.

The motion required 60 votes to pass but fell short with 57.

The vote came near the end of a turbulent day in which Democrat Christopher Dodd, manager and author of the bill, dropped an attempt to kill a Lincoln proposal that would force banks to hive off their derivatives divisions.

Dodd had been attempting to impose a two-year stay on the measure, to allow regulators to investigate the impact it might have on major banks and the wider financial system. But in a dramatic reversal, yesterday he said he would drop the amendment.