Bill Seeks to Strip Powers of U.S. Fed
Christopher Dodd, chairman of the Senate banking committee, has proposed a overhaul of the country’s regulatory architecture that would strip the powers from the Federal Reserve and create a single banking regulator.
The proposal to consolidate regulators faces strident opposition from the Fed, the Federal Deposit Insurance Corporation and smaller regulators.
Mr. Dodd said most institutions would benefit from a regulator that would provide "clarity, cut red tape and make it easier to compete," and banks would "no longer be able to shop for the weakest regulator."
The Senate draft legislation also creates an agency to oversee systemic risk, which could call for banks to be broken up if they threatened the entire financial system and impose tougher capital requirements.
Republicans declined to support the proposed legislation, with a proposed Consumer Financial Protection Agency, which Mr. Dodd said was vital to crack down on abusive selling of mortgages and credit cards.
