Members of the Senate Banking Committee drafting financial reform have about reached a balance on the controversial consumer watchdog proposal, Republican Senator Bob Corker said on Tuesday, indicating a bipartisan deal could be reached soon.
Corker, in an interview on CNBC Television, said the committee will work through administrative issues regarding the consumer watchdog plan on Tuesday and Wednesday.
He also said some key members of the committee have a meeting with Treasury Department officials on Tuesday.
Corker has crossed party lines to work with Christopher Dodd, the Democratic chairman of the committee, to reach a bipartisan deal after prior talks broke down.
A major sticking point has been the proposed Consumer Financial Protection Agency, which the Obama administration originally envisioned as an independent, stand-alone agency with broad powers to write and enforce rules.
The Senate Banking Committee has been working around-the-clock in recent days to reach a deal on housing the consumer watchdog in another body, possibly the Federal Reserve.
I think we've about reached a balance that is an appropriate balance, Corker said about the consumer watchdog.
My sense is we've got that about right. And it's an issue that if you get it out of balance can do tremendous damage to our financial industry.
Corker said he hopes bipartisan legislation will be introduced soon that will include a strong resolution mechanism to unwind troubled financial firms, more oversight for derivatives markets, and enhanced capital requirements.
He said it will not include an overhaul of mortgage finance giants Fannie Mae and Freddie Mac.
Corker said it is up to Dodd to determine the timing of the bill's release but said he expects the Senate Banking Committee will be debating the bill before Congress recesses for Easter later this month.
(Reporting by Karey Wutkowski, editing by Dave Zimmerman)