Another Republican casts his doubts

Financial Times:

Richard Shelby, chairman of the Senate banking committee, has become the latest senior Republican to cast doubt over the prospect of passing Social Security reform - one of President George W. Bush's top priorities for his second term in office.

Speaking to business leaders at the World Economic Forum in Davos, Switzerland, Mr Shelby said that his own priority as banking committee chairman would be to secure legislation establishing a tougher regulatory regime for Fannie Mae and Freddie Mac, the giant government-owned corporations that support housing finance.

He also suggested that Congress might be sympathetic to business requests for a renewal of government reinsurance for terrorism cover, even though the White House is against renewal.

On Social Security reform however, Mr Shelby said "a lot of people in the Republican caucus" were "nervous about it".

Opinion polls showing a majority of Americans against reform of Social Security were taking their toll on Republican morale.

"I have seen some polls recently and they do not look good," he said.