On the House side, moderate Democrats are uneasy about the scope and power of the proposed watchdog, and their concerns have helped delay a markup on legislation. In the Senate, Banking Committee Chairman Chris Dodd is negotiating with Sen. Richard Shelby of Alabama, the skeptical ranking Republican.

And House Republicans see just another bureaucracy.

“The so-called consumer financial protection agency would, in fact, be a massive and expensive new government bureaucracy that, in the name of consumer protection, would ration credit and allow fewer financial choices for consumers,” said Alabama Rep. Spencer Bachus, the top Republican on the Financial Services Committee panel.