Bank of America Mess Jeopardizes Fed's Role in Oversight

Growing uncertainty about Federal Reserve Board Chairman Ben Bernanke's role in pushing Bank of America Corp. to go through with its deal to buy Merrill Lynch & Co. is likely to delay regulatory restructuring plans and give ammunition to those seeking to prevent the central bank from receiving more power. According to a report in American Banker, the White House said it hopes to finalize by yearend a regulatory revamp that would give the Fed sweeping new powers over the country's largest firms. Also on the drawing board is the creation of a new consumer protection agency that would have oversight over most mortgage origination laws and regulations. Meanwhile, lawmakers from both parties said they were unwilling to give the Fed more authority until questions over Bernanke's role in the Bank of America-Merrill deal were answered. BoA is now the nation's second largest mortgage banker, thanks to its purchase last year of Countrywide Financial Corp.