WASHINGTON (Bloomberg) — Senate Banking Committee chairman Christopher Dodd said he will release his version of legislation to overhaul financial rules, signalling that talks on a compromise with Republican Bob Corker have collapsed.

Dodd, a Connecticut Democrat who had been negotiating with Corker since last month, will release his proposal March 15 and hold a committee meeting to consider changes in two weeks, according to a statement released yesterday.

"I have been fortunate to have a strong partner in Senator Corker and my new proposal will reflect his input and the good work done by many of our colleagues," Dodd said. "Our talks will continue and it is still our hope to come to agreement on a strong bill all of the Senate can be proud to support."

Corker agreed to work with Dodd after talks broke down in February between Dodd and Senator Richard Shelby, the top Republican on the committee, over consumer protection issues. The bill is aimed at strengthening Wall Street rules to prevent a future financial crisis and a repeat of taxpayer bailouts of firms like American International Group Inc. and Citigroup Inc.

Dodd will release a "substitute" of legislative language he offered in November, which called for creating a stand-alone Consumer Financial Protection Agency and a national bank regulator in the merger of four agencies.

The new Dodd bill will include some elements negotiated with Corker. For example, it won't propose the stand-alone agency, which Corker opposed, and will probably put the consumer unit in the Federal Reserve with an independent budget and a director appointed by the President.