The $1bn (£650m) fraud prosecution of Goldman Sachs has given a fillip to the White House, which is hoping that fresh anti-Wall Street sentiment will push an overhaul in financial regulation through a deeply divided Senate this week.

Harry Reid, the Democratic leader in the Senate, hopes to hold a vote tomorrow to end debate on the Obama administration's reforms, which include a government levy on big banks, the introduction of the "Volcker rule" banning risky proprietary trading, and the creation of a consumer financial protection agency.

The Republican leadership argues that the reforms will do more harm than good, but the White House is seeking to win over the single opposition senator needed to turn the Democrats' 59-41 margin into a filibuster-proof 60-40 majority. Once over this barrier, the reforms will need only a simple majority and could clear Congress within a few weeks.

Political analysts say that the fraud case brought by the Securities and Exchange Commission (SEC) against Goldman came at a crucial time. Ethan Siegel of the Washington Exchange, which monitors Capitol Hill for institutional investors, says: "The SEC's announcement reminded the country of what it was so upset about with regard to the economic downturn - which was the egregiousness of the behaviour of big financial institutions."

Conservatives view Obama's reforms as an extension of "big government". A $50bn resolution fund, intended to pay for winding down any future failed banking behemoth, has been branded a "bailout fund" by Republicans.

Aware that they are fighting an unpopular corner, Republicans are deeply suspicious about the convenient political timing of the Goldman prosecution. The SEC's own board was split over it, with two Republican appointees voting not to proceed. Darrell Issa, a senior Republican senator, claimed the lawsuit had raised serious questions about the SEC's independence and impartiality.

Obama has said there was no political intervention - the president insists he knew nothing of the impending case until it was reported on television.