Dodd Declares War With Senate Bank Bill

Senator readies radical overhaul of finance regulation
By Jane Yager,  Newser Staff
Posted Nov 5, 2009 7:34 AM CST
Sen. Johnny Isakson, R-Ga., looks on at left, as Senate Banking Committee Chairman Sen. Christopher Dodd, D-Conn. gestures during a news conference on Capitol Hill in Washington, Oct. 29, 2009.   (AP Photo/Harry Hamburg)
camera-icon View 1 more image

(Newser) – A Senate bill that would fundamentally change the structure of banking regulation is headed for a clash with both the House and the White House. Christopher Dodd is readying a proposal to strip the Fed and FDIC of almost all bank-supervision powers, creating in their place a new agency that would supervise all banks and bank-holding companies, the Wall Street Journal reports.

Sen Dodd's plan will have no shortage of enemies: Likely to face GOP opposition within the Senate, the proposal is also at odds with House plans to expand the role of the Fed, and is expected to draw ire from the banking industry, which opposes regulator consolidation. Fed and FDIC officials have strongly resisted bids to reduce their powers, and the White House earlier rejected merging of bank regulators as politically unrealistic.
(Read more FDIC stories.)