**Proposals for a sweeping overhaul of US financial regulations appear on course to fail a key test.**In a blow to President Barack Obama, Republicans vowed to block debate of a reform bill in the Senate.
Last-minute talks were taking place to reach a compromise that would allow the Senate to debate the legislation.
But Senator Richard Shelby, the chief Republican negotiator on the issue, appeared intent on halting the bill’s passage until changes were made.
Monday’s Senate vote is on a procedural issue that would clear the way for debate.
Democrats and their two independent allies control 59 Senate seats but need at least one Republican vote to overcome delaying tactics.
But Mr Shelby said on Monday that he expected the Republican vote to be solid: “If we hang together on the floor, we can create critical mass.”
Popular support
The bill aims to tackle financial institutions that are “too big to fail”, putting in place a framework that would mean taxpayers do not fund any future bailouts.
Among the bill’s proposals are changes to the derivatives market and tougher legislation to protect consumers.
The Democrats have characterised Republican opposition as a campaign to protect Wall Street.
Republicans says they oppose the bill in its current form because it does not go far enough to protect consumers, yet also threatens to undermine some of Wall Street’s strengths.
Mr Shelby told ABC television: “We want a bill that’s going to put to bed forever the idea that you’re going to bail out somebody. And what we’re trying to do here is strengthen the bill, not weaken it.”
Mr Obama has made reining in Wall Street a cornerstone of his presidency.
In a speech in last week to the financial community, he attacked the army of lobbyists in Washington employed by banks to oppose his changes.
However, even if the Democrats lose the vote on Monday, it is likely that the bill will just be delayed rather than killed altogether.
A poll published in the Washington Post on Monday suggests two-thirds of Americans support stricter financial regulations.This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.
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