Should the Democrats be successful in achieving a compromise, the legislation is still in danger, with GOP Members in nearly universal opposition to the cram-down provision.
While Republicans had participated in some of the earlier conversations, in recent weeks none has been at the negotiating table, according to lobbyists familiar with the talks.
Additionally, even if the banks and credit unions agree in principle on the cram-down provisions, its unlikely that they will expend a lot of political capital to try to push the bill forward, according to financial services lobbyists.
The difficulty in achieving an agreement demonstrates the basic philosophical divide on the issue, Scott Talbott of the Financial Services Roundtable said. The bulk of the industry remains opposed to the negative effects the bill will have on the market.
Terri Henderson, 6, center, whose mother is El Salvador, attends a rally with members of Congress at Union Station's Columbus Circle to announce the Restore Opportunity, Strengthen, and Improve the Economy (ROSIE) Act on July 29, 2014. The legislation provides incentives for government contractors to pay a living wage and other benefits that would help low-income workers.