SMART MOVE – AT 9:15 A.M. ET:  Congressional Republicans, showing signs of strategic intelligence, are moving toward an agreement with the Dems on a financial-reform measure.  From the Washington Post:

Key Senate Republicans on Tuesday began to back away from their sharp criticism of proposed new financial regulations and expressed optimism that a bipartisan deal on a bill that would drastically change the way Wall Street operates could emerge in the coming days.

After a week of attacking the proposals as paving the way for new taxpayer "bailouts," Minority Leader Mitch McConnell (R-Ky.) said on the Senate floor that he was "heartened to hear that bipartisan talks have resumed in earnest." Later, after a meeting with fellow Republicans, he told reporters that while he believes that there are still serious flaws in the legislation, "I'm convinced now there is a new element of seriousness attached to this, rather than just trying to score political points. . . . I think that's a good sign."

COMMENT:  Smart.  Opposing financial reform is a major loser for Republicans.  Once again the party would be seen as fronting for big business.  As Charles Krauthammer advised, get a compromise measure passed and put the issue behind us.  The further back from the November elections that this issue can be put to bed, the better it is for the GOP.  And, if Republicans help pass a measure, it diminishes Democratic credit.

Wall Street is about as popular now as it was in 1933.  One difference is that the Democrats are just as connected to the Street now as Republicans are, and in fact got the bulk of Wall Street financial contributions in 2008.  The GOP must hammer that home, denting the "we're for the little guy" claims of the Dems.

April 21, 2010