The GOP has removed their block against moving forward with Financial Reform.

The bill was reported to the floor Wednesday night and debate is set to begin on Thursday.

The real question is what compromised, watered down, ineffectual, lobbyist driven compromise was made? (as if the Dodd Bill itself wasn't swiss cheese).

Senate Republican Leader Mitch McConnell (Ky.) released a statement Wednesday afternoon touting “a key agreement” to resolve disagreements over a $50 billion fund to liquidate troubled banks.

As a result, there will not be any more votes on the Senate floor Wednesday and Democrats will not keep the chamber in session overnight.

McConnell said Democrats have agreed to close “loopholes” in the fund provision. McConnell and Republicans have criticized the provision, which they said could allow federal officials to draw on taxpayer dollars to wind down a troubled institution.

Democrats and the White House have insisted the fund would be paid for entirely by the industry.

The Wall Street Journal is reporting the $50 billion dollar bail out fund was dropped.

Other key parts of the Dodd-Shelby agreement would make it harder for top executives at failed financial firms to claim large compensation packages. It would also give the government power to limit payments for certain creditors of failed firms. If creditors are initially paid a larger sum than it turns out they would have later received under bankruptcy, the government could have the power to recoup some of that money.

There are amendments that could be passed on the Senate floor that could turn this into a real financial reform bill.

This post will be updated with the status of some of those amendments.