The Congressional Quarterly Today reported this week that the Senate is nearing a resolution on "pay-as-you-go" budget issues that have hindered attempts in both chambers to extend TRIA. Essentially the Senate is proposing to accelerate the annual repayment plan whereby the insurance industry would repay the federal government for coverage, up to a certain level.

Assuming that the Senate's plan wins broad support, the Senate bill could be on the floor by early December. Even so, the Senate can't ignore the elephant in the room, i.e., the fact that the Senate and House bills on the extension of TRIA are oceans apart in terms of coverage, ideology, not to mention the length of the extension itself.

The House has threatened to pursue a 120-day extension instead if the Senate continues to push for its narrow extension of TRIA. The insurance industry has warned that a 120-day extension could disrupt the market.