Credit cards, mortgages and other financial products would be under the jurisdiction of a new agency according to a proposal to be unveiled tomorrow by President Obama.
Several media reports said the Consumer Financial Protection Agency would have the authority to issue rules, conduct investigations and levy penalties.
Previous leaks about the plan had indicated that all the existing regulators-except the Office of Thrift Supervision-would remain intact, including the NCUA.
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The proposal also calls for stronger regulation of derivatives and credit rating agencies, and the Federal Reserve would have more power to close down problem financial institutions.
Obama plans to formally unveil his proposal tomorrow and Treasury Secretary Timothy Geithner is scheduled to testify on it before House and Senate committees on Thursday.
The proposal, which is being billed by the administration as the largest regulatory overhaul since the 1930s, must be approved by Congress.
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