US banks bill seeks to strip Fed of powers
An influential US Senate committee has proposed a sweeping overhaul of the country’s regulatory architecture that would strip powers from the Federal Reserve and create a single banking regulator.
Chris Dodd, chairman of the Senate banking committee, on Tuesday presented a more radical vision of regulatory reform than that proposed by the Obama administration. The move ushered into the open a behind-the-scenes struggle between banks, policymakers and regulators.
Democrats lined up behind Mr Dodd as he presented the bill. But senior Republicans were missing from a press conference in spite of attempts by President Barack Obama to secure their support for one of his most important legislative goals.
The proposal to consolidate regulators faces strident opposition from the Fed, the Federal Deposit Insurance Corporation and smaller regulators, which argue they are best placed to supervise banks.
Mr Dodd said most institutions should benefit from a regulator that would provide “clarity, cut red tape and make it easier to compete”, but banks would “no longer be able to shop for the weakest regulator”.
Source/Full Story: FT.com
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