Senate Republicans unanimously voted again to block debate on legislation rewriting the rules of the U.S. financial industry, embracing a strategy that party lawmakers argue will yield political and policy gains, Bloomberg reported.

Democrats say yesterday’s vote, coming as Goldman Sachs Group Inc. executives were being questioned by a Senate panel, is a dangerous gamble for Republicans, given public anger over Wall Street and support for new regulations. The bill would strengthen rules governing the financial services industry to try to prevent a repeat of the $700 billion in taxpayer-funded aid Congress approved in 2008 to firms including Citigroup Inc. and Bank of America Corp.

“This is political dynamite, and I think Republicans have lit the fuse,” said Sen. Robert Menendez, a New Jersey Democrat who heads the Democratic Senatorial Campaign Committee.

Iowa Democrat Tom Harkin castigated his Republican colleagues in a press release for blocking the bill, which he called “critical to laying a foundation for rebuilding our nation’s economy.”

“I am extremely disappointed that Senate Republicans continue to stand in the way of critically needed Wall Street reform while hard-working Americans continue to suffer,” he said.

Senate Republican leaders are pressing their 41 party members to stay united against the Democratic plan, saying that will give them maximum leverage to change key provisions in a bill calling for the biggest overhaul of financial rules since the 1930s.

“With 41 sticking together saying we need to continue the bipartisan negotiations, that is the leverage we have,” Sen. John Cornyn, a Texas Republican, told reporters. “When we lose that, we lose leverage.”

That argument worked yesterday for the second time in two days, as no Republican broke ranks to join Democrats in a 57-41 vote preventing the start of floor debate. Sixty votes are needed to begin consideration of the bill.

Sen. Majority Leader Harry Reid, who is pressing on with the test ballots in a bid to show that Republicans are standing in the way of an overhaul, vowed, “There will be more votes this week.” A third vote is expected early this afternoon.