“This bill does nothing to change the expectations in the market that some firms are too big to fail,” said Senator David Vitter, a Louisiana Republican who serves on the Banking Committee. “I’m disappointed that Senator Dodd has decided to abandon any sort of bipartisan approach in favor of political posturing on behalf of the Obama administration.”

This hews closely to the advice that GOP pollster Frank Luntz gave to Republicans earlier this year, which was to portray financial reform as inevitably leading to more big bank bailouts, no matter what the legislation actually says. House Republicans also used this tactic incessantly during the regulatory reform debate last year, falsely claiming that Rep. Barney Frank’s (D-MA) bill created a “permanent bailout fund.”

However, Dodd’s actual legislation tells a very different story.

continued...

Even Larry "TARP in Perpetuity" Kudlow says "Surprise, surprise. Sen. Chris Dodd’s financial-regulation proposal raises the possibility of substantial progress on the road to ending 'too big to fail' (TBTF) and bailout nation for banks and other financial institutions."

And the top GOP propagandist's messaging memo seems to be backfiring on Bailout Bob Corker:

"You must put proponents of the legislation on the defense, forcing them to attempt to justify the 'lobbyist loopholes' and exemptions placed in the bill... Highlight the exemptions. Broadcast them. Remind them, 'The legislation is filled with lobbyist loopholes that exclude certain wealthy, powerful industries from regulations.'"

like payday lenders?