Popular support for financial reform makes it likely that a bill will pass in the U.S. Senate, so it raises the interesting question of how Democrats and Republicans will attempt the unfamiliar maneuver known as compromise.

Let’s hope they can accomplish it. The economic crisis of the past two years has shown us that the present system is weak in many ways. It’s become clear, for instance, that investment bankers and hedge funds are all too willing to undercut the U.S. economy in search of profitable trades.

But although Democrats and many Republicans seem to agree on the need for reform, a Senate Banking Committee bill failed on Monday, and then again on Tuesday, when Republicans refused to allow it to come forward.

Sen. Olympia Snowe and Sen. Susan Collins of Maine were among those voting to block the bill. Each quickly released an explanation, listing problems with the Democratic proposal.

Snowe, for instance, warned of a “$50 billion bail-out fund” for big banks. This is the GOP’s biggest problem with the bill, but Democrats describe the fund as the opposite of a bail-out. It is money that will be raised from the banking industry, to be used to pay for the orderly liquidation of any failing bank.

Snowe also warned that new rules on consumer lending include provisions that might harm seasonal businesses and small banks. The potential impact on community banks and small businesses also loomed as a concern for Collins.

Declaring her support for reform, Collins urged the Senate to” set the partisan bickering aside.” It’s good advice, particularly on this issue.

During a Senate hearing Tuesday on the role of Goldman Sachs in the bundling and sale of collateralized debt obligations and other financial instruments, Collins lamented how recklessness had devastated the housing market. “When it all collapsed, like a house of cards, we realized too late how incredibly fragile and tragically interconnected the system had become,” she said.

It doesn’t require reading between the lines to discern that Maine’s senators favor enacting reforms. Once again they seem well placed for achieving a compromise, one that protects the interests of small banks and small businesses while establishing reasonable oversight over the trading of financial derivatives.

It’s a complicated impasse, but the resolution might come easily if Collins and Snowe are persuaded to let legislative work begin. The best route to reform is to bring a bill before the Senate for debate, amendments and enactment.

— Questions? Comments? Contact Managing Editor Nick Cowenhoven at nickc@journaltribune.com.