WASHINGTON — After more delays and partisan fighting late Thursday over whether and how to proceed on financial reform, the Senate rejected 61 to 33 a populist amendment that would have forced the break up of the nation's biggest banks.

The measure from Democrats Sens. Sherrod Brown of Ohio and Ted Kaufman of Delaware would have placed a hard cap on banks of 10% of the nation's insured deposits. It would have limited a bank's nondeposit liabilities at 2% of the national gross domestic product. That cap would have been 3% for financial institutions that do not own a bank.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.