On Friday, Senate Banking Committee Chairman Christopher Dodd, D-Conn., proclaimed that bipartisan negotiations over a financial regulatory overhaul are at an impasse. However, Dodd says he intends to move forward with a markup later this month. A major sticking point is a proposal to set up a consumer agency or a similar watchdog to oversee common financial products such as mortgages and credit cards.

The ranking member on the banking panel, Richard Shelby, R-Ala., has made it clear that he would not accept a separate consumer agency. An alternative might be an expanded consumer financial protection division within an existing regulatory agency.

Dodd said Shelby is still committed to finding a consensus on financial reform, but for now they have reached an impasse. New legislation could be offered later this month.