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The chiefs of major agencies that are writing hundreds of rules mandated by Dodd-Frank told the panel at a hearing that they need more money to carry out the law, which was approved following the 2007-2009 financial crisis.

Regulators also gave some glimpses into their thinking on implementation of Dodd-Frank rules involving debit card fees and subjecting large financial firms to stricter oversight, as well as on dealing with the mortgage servicing scandal.

For investors and Wall Street, the Senate hearing represented another act in a long-running drama that analysts expect will lead to few, if any, changes in the Dodd-Frank reforms due to political gridlock ahead of the 2012 elections.

"Republicans will argue in favor of extending implementation of (Dodd-Frank) ... but these are timing issues and won't affect the substance of the rules," said Brian Gardner, analyst at investment firm of Keefe Bruyette & Woods.

From derivatives oversight to bank capitalization, the financial regulation issues being debated on Capitol Hill will also feature in a Paris meeting on Friday and Saturday of Group of 20 finance ministers and central bank chiefs.

With international coordination of post-crisis reforms still a serious challenge facing U.S. and EU policy-makers, Senator Richard Shelby urged a Dodd-Frank slow-down.

"Regulators must not compound the mistakes of Dodd-Frank by promulgating uninformed rules," said Shelby, the committee's top Republican member, at the hearing.

Republicans and the financial industry could win delays in implementation, said Joseph Engelhard, analyst at advisory firm Capital Alpha Partners. "More time will be needed," he said.

Democratic Senator Tim Johnson, replacing Christopher Dodd, presided over his first hearing as committee chairman.

Johnson pledged to defend "the letter and spirit" of the sprawling Dodd-Frank statute, though he cautioned that its global impact must be handled "with great care to avoid unintended consequences that could impair economic growth."

HEAVY LOAD FOR REGULATORS

Dodd-Frank was written and passed by congressional Democrats and signed into law by President Barack Obama over the fierce opposition of Republicans and Wall Street.

With 2012 elections looming and campaign donations from the financial industry rolling in, Republicans are pressing to trim back Dodd-Frank at the funding and administrative levels, with legislative changes seen as unlikely to gain much traction.

House Republicans -- pursuing dual goals of combating the federal deficit and undermining reforms that they continue to oppose -- want to restrain financial regulators' budgets.