Senate Shuffle Could Stall Banking Overhaul

The death of Sen. Edward Kennedy could start a wave of changes at the top of that chamber’s committees. Sen. Kennedy was chairman of the Senate’s Health, Education, Labor and Pensions committee, a post that Sen. Chris Dodd (D-Ct.) may covet. Dodd, as bankers well know, is currently chairman of the Senate Banking Committee.

Should Dodd leave the banking committee, his likely replacement as chairman would be Sen. Tim Johnson (D-SD).

Congress and the Obama administration are still working through an overhaul of the financial services industry’s regulatory framework. A change in leadership could stall those efforts, or at least act as the catalyst for a change in strategy or focus.

Johnson is a former state representative and Senator and served 12 years in the House of Representatives before being elected to the Senate in 1996. His health forced him into the spotlight in December 2006 when bleeding in his brain nearly killed him. He returned to the Senate in September 2007.

Eight of Johnson’s 20 largest campaign contributors during the past five years have come from financial services companies, including JPMorgan Chase, Bank of America, and Wells Fargo. He has sponsored only one financial services-related bill during the current Congressional session — S.2119 — which would require the Treasury Department to mint coins in commemoration of veterans disabled while serving in the Armed Forces.