Bravo, sir. The Lord Regent is furious about losing the most recent vote at Parliament. He was counting on the support of the Pendleton family and expected limited resistance. Just as you said it would, losing the Pendleton voting block has really slowed him down.
And since the Lord Regent's defense budget failed as well, he's getting desperate financially. It seems that most of the coin he's using to keep the City Watch going is coming from a close ally. We suspect it's a powerful noble woman, who is perhaps his mistress.
I'll try to dig up more information. As we know, if the Watch doesn't get paid in coin and in elixir their loyalty will start to crumble.
--Your friend on the inside