Dodd Leaning Toward One Regulator for all Banks

Senate Banking Committee Chairman Chris Dodd (D-Conn.) is actively considering a regulatory reform bill that would create a single federal regulator for financial institutions, stripping supervisory powers away from existing agencies, according to sources on Capitol Hill. The bill — which, sources cautioned, remains a work in progress and could be derailed by several factors — also would likely create an interagency systemic risk council rather than give such oversight to the Federal Reserve Board, as the Obama administration has advocated. Dodd's committee is working to finish a draft soon, with the hope of passing a bill this year. But whether this version will survive hinges on whether Dodd decides to give up his Senate Banking chairmanship in order to run the Health, Education, Labor and Pensions Committee. A new banking chairman would probably tweak the bill and could even take a new approach. Sen. Dodd is up for re-election next year but could be in trouble. In March one poll showed him with an approval rating of about 30% — thanks mostly to published reports that he was in the 'Friends of Angelo' program and received a price break on his mortgage from Countrywide Home Loans. Former Countrywide chairman and CEO Angelo Mozilo started the program which gave discounted points and fees to selected customers, including elected officials.