Here’s an endorsement Congressional Democrats will probably they hadn’t received. Guess who’s on board with the financial regulatory reform legislation being pushed by Senate Democrats? Goldman Sachs.

“I’m generally supportive,” Blankfein told the Senate Permanent Subcommittee on Investigations.

Wall Street will benefit from the bill because it will make the market safer, Blankfein said.

“The biggest beneficiary of reform is Wall Street itself,” he said. “The biggest risk is risk financial institutions have with each other.”

The legislation creates a permanent bailout fund and charges regulators with bailing out banks and financial institutions even before they’ve failed. It will punish community banks, protect major Wall Street institutions, limits financial choices for consumers, and does nothing to address Fannie Mae and Freddie Mac. Of course Wall Street institutions are on board.

Senator Chris Dodd (D-CT), the legislation’s author, is known for his shady connections to the “too big to fail” companies. He was forced out of his re-election campaign thanks to his protection of AIG bonuses and special deals with Countrywide — both of which had to be bailed out by taxpayers.

Goldman Sachs employees donated nearly $1 million to Barack Obama’s presidential campaign. In fact, 75% of all Goldman Sachs donations went to Democratic candidates in 2008. It’s about the same this year.

Democrats are strongly connected to Wall Street. Does anyone really believe they’re going to pass legislation that targets Wall Street’s most powerful institutions? Hardly. They’re going to create more bureaucracy, harm smaller banks, limit choices for consumers, and make sure they can bail out their friendly “too big to fail” allies without requiring future authorization.