Rep. Barney Frank (D., Mass.) and Sen. Christopher Dodd (D., Conn.) said they believed a final deal on the new package regulating the financial sector would be completed soon, but talks hit snags Thursday. Aides said they believed a deal would still get done but added that the process was slower than expected.

The most divisive issue was a provision backed by Sen. Blanche Lincoln (D., Ark.) that could force banks to spin off their derivatives businesses. Many New York Democrats and several dozen business-friendly Democrats have said the provision, known as "716," needs to be removed.

"It would be impossible for me to vote for a bill that contains that provision," said Rep. Michael McMahon (D., N.Y.). The House version of the bill passed in December by roughly 20 votes, meaning a small number of defections could imperil the bill.

Congress is currently trying to reconcile the House and Senate versions of the overhaul bill, and still hopes to complete that process in the next few days.