Senators fail to reach bipartisan derivatives overhaul

Senators have failed to reach a bipartisan deal to overhaul the multitrillion-dollar financial derivatives market, as a key panel heads to mark up sweeping legisation on Monday.

Sens. Jack Reed (D-R.I.) and Judd Gregg (R-N.H.) worked for months to reach an agreement on derivatives legislation. Senate Banking Committee Chairman Chris Dodd (D-Conn.) pulled the plug on bipartisan negotiations a week ago in an effort to move broad financial legislation along in committee. Derivatives regulations are one part of a much larger financial measure.

Gregg said in a statement Friday that senators made "great progress," but that they had yet to reach a final deal.

"Dodd's decision to move the mark-up forward leaves the effort incomplete," Gregg said in a statement.

He said he was hopeful that senators could reach a final bipartisan bill.