Senate Banking Committee chairman Christopher Dodd, D-Conn. said his talks with the ranking committee Republican have reached an impasse and he wants to move ahead with financial regulatory reform legislation.

"While I still hope that we will ultimately have a consensus package, it is time to move the process forward. I have instructed my staff to begin drafting legislation to present to the committee later this month," Dodd said.

The chairman wants to strengthen consumer protections and supports the Obama administration's proposal to create a separate agency to protect consumers from abusive mortgage lending and credit card practices.

Sen. Richard Shelby, R-Ala., opposes a separate agency that would strip the federal banking regulators of their consumer protection function. "I fully support enhancing both consumer protection and safety and soundness regulation. I will not support a bill that enhances one at the expense of the other, however," Shelby said.

The Alabama senator said he hopes to reach bipartisan agreement in other areas, including derivatives regulation and corporate governance.

"I remain willing to work with Chairman Dodd to see whether that is possible," Shelby said. Despite the impasse,

Sen. Bob Corker, R-Tenn., said he would continue to work with Sen. Mark Warner, D-Va., on a bipartisan approach to dealing with the failure of large financial institutions and other systemic risk issues.

"Chairman Dodd has assured us that our work will be included in the bill," Corker said.

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