February, 27, 2010

The U.S. Senate's chief architect of financial regulation reform said on Friday the Federal Reserve may "not necessarily" lose its authority to supervise banks, signaling a potential shift in his thinking.As he searches for compromises to win support for a landmark financial regulation bill, Senate Banking Committee Chairman Christopher Dodd told Bloomberg TV the Fed may retain some of its historic role in supervising banks.

That would be a big change from Dodd's initial regulatory reform proposal released in November, which called for creating a new super-cop for banks that would have taken over the banking oversight duties of the Fed and other agencies.Dodd is expected to release a new bill next week that reflects long negotiations with Republican Senator Bob Corker and other lawmakers on an issue that is a top priority of the Obama administration -- tighter financial regulation.

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