Bipartisan negotiations over a financial regulatory overhaul are at an "impasse," Senate Banking Committee Chairman Chris Dodd said Friday, adding that he intends to move forward with a markup later this month.

Democrats and Republicans on the committee have been trying to reach a bipartisan agreement on a bill since December. A major sticking point has been a proposal to set up a consumer agency or a similar watchdog to oversee common financial products such as mortgages and credit cards.

Republicans have generally been opposed to such an agency, but it is seen by many Democrats and President Obama as a cornerstone of any overhaul effort.

The Banking panel's top Republican, Richard Shelby of Alabama, had made it clear that he would not accept a separate consumer agency, and sources said last month that he and Dodd were discussing the possibility of creating an expanded consumer financial protection division within an existing regulatory agency.

"Last night, Senator Shelby assured me that he is still committed to finding a consensus on Financial Reform, but for now we have reached an impasse," Dodd said in a written statement Friday. "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."

A version of this story originally appeared in CQ.