WASHINGTON—Several senior Republicans have joined negotiations with Banking Committee Chairman Christopher Dodd (D., Conn.) over how to construct consumer-protection rules, potentially bringing more Republican votes to a broader revamp of finance rules—if Democrats can stomach more concessions. "We're very, very, very close to a deal," Sen. Bob Corker (R., Tenn.) said in an interview. The development came after a closed door meeting Tuesday night between Mr. Corker and Sens. Mitch McConnell (R., Ky.), Richard Shelby (R., Ala.), Judd Gregg (R., N.H.), and Mike Crapo (R., Idaho). The meeting was called after a Wall Street Journal story Tuesday said Messrs. Corker and Dodd were near an agreement on a compromise to create a new consumer protection division within the Federal Reserve. Many lawmakers reacted with surprise, blindsided by the idea. Few expected the Fed to gain more power. Several Senate aides familiar with the matter said senior Republicans wanted to know more about the potential deal and hastily called the meeting.[Read more...]