On Friday, Senate Banking Committee Chairman Christopher Dodd (D-CT) indicated in an informal statement that bipartisan efforts to agree on financial regulatory reform legislation had reached an impasse. Senator Dodd stated that he would begin drafting new legislation to be considered later this month, but emphasized that he hoped to incorporate many of the agreements reached in bipartisan negotiations over the past two months into the new proposal. Senator Dodd also noted that his counterpart, Senator Shelby (R-AL), the Committee's ranking member, had assured him that he was still committed to finding a consensus on financial reform.

Senator Shelby, in a separate formal statement, cautioned that he would not compromise "the safety and soundness of the financial system and taxpayer protection against bailouts." He further noted that the lawmakers must "craft a resolution regime that ensures taxpayers will never again bear the losses for risks taken in the private marketplace" and emphasized that he remained optimistic that a bipartisan agreement could be reached on the many outstanding issues, including derivatives regulation and corporate governance.

In December, the House passed its version of the financial regulatory reform legislation.