by Daniel Costello

Yesterday, Senator Christopher Dodd (D-CT), chairman of the Senate Banking Committee, announced he won't seek reelection after poll numbers showed he would likely lose his reelection bid. A big question: does Dodd's retirement effectively kill pending financial reform?

Regulatory reform is a key part of the agenda that could be important for Democrats in 2010 and 2012. As the ruling party, voters are likely to view whatever Democrats pass as their response to the central question of how to make sure Wall Street excesses don't threaten the entire economy again.

 

At his daily briefing today, White House Press Secretary Robert Gibbs was asked about this issue and said reform is still on track:

"I think Senator Dodd has been a passionate advocate for ensuring that we have rules in place so that what happened on Wall Street doesn't happen again, that we have strong consumer financial protections, and I think Senator Dodd will continue to work on that with his committee throughout this process," Gibbs said

When asked, more directly, if Dodd will become something of a lame duck, Gibbs said:

"No, look, knowing Senator Dodd and the passionate advocate that he is, I think he will continue to work hard and want to get this done by the end of the year, as the president does too."

A story on Politico says that "people close to Dodd" say he will still aggressively push financial reform.

People close to Senate Banking Chairman Chris Dodd say he will forge ahead on financial reform despite forgoing his reelection bid — even though some financial insiders believe that the negotiations on the major bill will change.

"Knowing him the way I know him, I think that he would fight as hard for this legislation whether he were running for reelection or looking upon it as a legacy item," said a Senate Democratic aide who discussed the issue with Dodd Tuesday night.

Daniel Indiviglio, a blogger and staff editor for the Atlantic Business Channel, writes that reform isn't likely to happen no matter how hard Dodd tries.

Dodd will be a sort-of lame duck. As a result, his bargaining power will be diminished.

I agree with Indiviglio. It seems to me that Dodd's lame duck status does seriously restrict his negotiating power, especially with an issue as complex and with so many rich and powerful opponents as financial reform. I don't see how the White House can get anything close to real reform, with some actual teeth in it, without a strong chairman of the Senate Banking Committee.

What do you all think?