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.
Vice President Joe Biden waits to conduct a mock swearing-in ceremony with Sen. Brian Schatz, D-Hawaii, in the Capitol's Old Senate Chamber, December 2, 2014. Schatz was sworn in to serve the remainder of his term since he was appointed to the seat after Sen. Daniel Inouye, D-Hawaii, passed away.