WASHINGTON–Key senators were close to a deal on legislation to overhaul financial regulations, people familiar with the matter said, bringing the U.S. a step closer to sweeping changes to the way banks interact with consumers and the markets alike. Top senators from each party were near a breakthrough agreement to create a new consumer-protection division within the Federal Reserve. This has been a contentious point due to heavy criticism of the Fed's past handling of its consumer-protection powers. View Full Image Bloomberg News Senator Christopher Dodd, a Democrat from Connecticut and chairman of the Senate Banking Committee listens to Ben S. Bernanke, chairman of the U.S. Federal Reserve, speak during his semiannual monetary report in Washington, D.C. on Thursday, Feb. 25, 2010. Senators Christopher Dodd (D., Conn.) and Bob Corker (R. Tenn.) were conferring with other members of their parties last night in an effort to sell that agreement to them, Senate aides said. The two senators have also reached a deal that would let the federal government break up large, failing financial companies.[Read more...]