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November 21, 2009 (LPAC)—Members of the Congressional Black Caucus blocked consideration of Barney Frank's financial regulation bill in the House Financial Services Committee Thursday, on the same day that the committee passed, by a 43-26 vote, the bill to audit the Fed co-sponsored by Republican Ron Paul and Democrat Alan Grayson. Bi-partisan supporters of the Paul-Grayson bill also defeated a competing measure introduced by Rep. Mel Watt (D-NC), which would have put more, not fewer, restriction's on the GAO's ability to audit the Fed.

The passage of the Paul-Grayson amendment is widely seen as a sharp rebuke of the Obama Administration, and occurred in the face of adamant opposition by the Fed, and even a joint letter to the Financial Services Committee from former Fed chairman Alan Greenspan and Paul Volcker.

Coming on top of the developments reported yesterday — the calls by Democrat Peter DeFazio, echoed by some Republicans, for Geithner and Summers to resign, and Rep. John Conyers' open criticisms of President Obama — we see how the mass strike process is propelling even Democrats in Congress to break with Obama on key issues, particularly on the economy.

The Black Caucus's stalling of Barney's financial regulation bill came during a break in the markup on the bill on Thursday afternoon. A number of CBC members cornered Frank and told him they wouldn't vote for the bill because of the deepening problem of unemployment in their districts. "We will not be proceeding to passage today," Frank then told the committee. "I have been meeting with members of the committee, particularly the members of the Congressional Black Caucus, who have informed me that they are troubled by what they believe is the lack of response to the economic situation that is confronting them on the part of the Administration."

Meanwhile, Rep. Peter DeFazio (D-OR) said he plans to press the 27-member Congressional Populist Caucus (most, if not all, Democrats) to back his call for the ouster of Geithner and Summers.

ABC's George Stephanopoulos got it right this morning, when he said on ABC's "Good Morning America" show that, "What you're seeing from those members of Congress right there — they're trying to get ahead of the stampede."