There is probably an element of truth to Chris Dodd’s claim that he cannot come to an agreement with Senate Republicans on financial reform:

The chairman of the Senate banking committee said Friday that efforts to reach a bipartisan consensus on sweeping legislation to overhaul the nation’s financial regulatory system had “reached an impasse,” but he said he intends to move forward even without Republican support.

For the second time since November, talks have stalled between Sen. Christopher J. Dodd (D-Conn.) said ranking Republican Sen. Richard Shelby (Ala.). Both men have expressed interest in reaching a consensus on a wide-ranging bill that would revamp regulation of the financial services industry. But after months of negotiation, they have yet to overcome a key hurdle: the proposed creation of a consumer protection regulator to focus on mortgages, credit cards and other such financial products.

The part that is suspicious, and the reason that I’m inclined to believe that he has lost interest in reform now that he is no longer running for reelection, is that he is going all Claude Rains on the fact that Republicans are not negotiating in good faith.

We’ve seen this phenomenon over and over again: Republicans do not negotiate in good faith until you have something that would kill them politically to vote against.

First you jam them up, then you twist their arm, and then maybe, just maybe, they will agree to be cooperative as you move their head toward the toilet bowl.