Dodd prepares independent reform bill

WASHINGTON, Nov. 5 (UPI) -- The chairman of the U.S. Senate Finance Committee is forging a financial reform bill vastly different from the Treasury Department's initiative, sources said.

Sen. Christopher Dodd of Connecticut, a pivotal senate member on financial matters and a Democrat is preparing a bill that would wipe out supervisory powers for both the Federal Reserve and the Federal Deposit Insurance Corp. The House bill, prepared by Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee would allow both agencies to keep their supervisory roles.

Dodd's bill would create a new agency for supervising banks and holding companies, The Wall Street Journal reported Thursday.

Both the House bill and Dodd's would create a council represented by several agencies to oversee systemic risk. Dodd's council would be led by an independent White House appointee, whereas the House bill leaves leadership of the committee to the secretary of the Treasury.

Currently, there are four agencies that monitor and supervise banks, creating the likelihood that Dodd's bill will have several high level regulators opposed to the measure.

Fed Chairman Ben Bernanke and FDIC Chairwoman Sheila Bair have both said their agencies should retain regulatory control of the industry.