As the GOP (and the bank lobbyists on which they rely) try to chip away at the U.S. Senate financial reform bill, rumors are swirling that lawmakers may strike a deal forcing federal regulators at the new Consumer Financial Protection Agency to preempt stronger state consumer financial protections. In the House, Rep. Melissa Bean led the charge for such language, finally agreeing on a compromise measure to allow for preemption on a case-by-case basis. Now, if the bankers get their way, the Senate may limit the reach of state laws even more. "This essentially takes cops off the beat," writes FireDogLake's David Dayen, "at a time when we should be adding them."

Illinois Attorney General Lisa Madigan fought Bean's effort last winter. On Friday, she released another strong statement warning the Senate to proceed with caution. "In a time of global economic crisis," she said, "we clearly need more enforcers of consumer protection laws, not fewer." Read it here.