Sen Dodd sees Wall Street reform approval

WASHINGTON (Reuters) - The Senate's lead lawmaker on Wall Street reform said on Wednesday he expects a massive rewrite of financial regulations to overcome procedural hurdles as soon as Thursday and go on to win final approval.

Democratic Senator Christopher Dodd told Reuters it was possible that the bill might win the support of "one or two" more Republican senators, in addition to those already backing it. But he said he remained cautious.

"I'm always the cautious one, but I believe we're OK," Dodd said on the outlook for final votes on the bill.

The House of Representatives has already passed the 2,300-page bill, which would impose tough new rules on Wall Street and the banking industry to try to prevent a repeat of the devastating 2007-2009 financial crisis.

The bill would curb risky trading by banks, set up a new government process for dismantling troubled financial giants and create a financial consumer watchdog.

Some key Senate Republican moderates -- Olympia Snowe, Susan Collins and Scott Brown -- have expressed support for the measure, likely pushing it over the 60-vote threshold it must cross to move forward to a Senate vote on final passage.

"I'm deeply grateful to Olympia Snowe and Susan Collins and Scott Brown," Dodd said. "There's always a possibility we may end up with a vote or two more on the Republican side.

"Based on where I am with the Democrats, I think we're at the magic number. I've had no room, really. I've been on the razor's edge with this. So I believe we're okay."

He said the Senate Banking Committee, which he chairs, may hold hearings later this year on regulators' plans for implementing the bill.

He added it is vital for Congress to deal with housing finance giants Fannie Mae and Freddie Mac, two troubled institutions whose futures are not mapped out by the bill.

"I'll be the first to admit this is a major area that must be addressed," said Dodd.

(Reporting by Kevin Drawbaugh, editing by Philip Barbara)