Senators Chris Dodd (D-Conn.) and Bob Corker (R-Tenn.) have agreed to work together to get a deal on a financial reform package.
As part of that effort, Dodd says that the consumer protection agency part of the reform package is being shelved but not completely removed. Negotiations for any kind of consumer agency would reportedly come at the end of the talks.
Corker, a key Republican on the Senate Banking Committee, said he is willing to work with Democrats on financial reform, aiming to salvage the Congressional effort to overhaul the regulation of financial markets.
Corker said he has been talking with Dodd, the chairman of the committee, since Dodd declared on Friday that bipartisan talks on financial reform were at "an impasse."
Corker said in an interview on CNBC Thursday that the issue is "a piece of legislation that needs to be passed" while also saying that divergent views on consumer protection could scuttle the effort.
Dodd issued the following statement Thursday on developments in financial reform negotiations:
"For over a year, the Senate Banking Committee has been grappling with how best to address the many problems that led to the financial crisis."
"In that time Senator Corker has proved to be a serious thinker and a valuable asset to this committee. For that reason, I called him Tuesday night and asked him to negotiate the financial reform bill with me. We met in my office on Wednesday and given the importance of these issues he agreed."
"While many difficult questions remain, financial reform is in a strong position due to the good work done by Banking Committee members, both Democrats and Republicans, to work out this bill."
"I am more optimistic than I have been in several weeks that we can develop a consensus bill to bring about the reforms the financial sector so desperately needs to prevent another economic crisis."