Washington (CNNMoney.com) - The head of a key banking panel on Monday released a draft bill of sweeping regulatory changes aimed at warding off future collapses in the financial system.
The bill put forth by Senate Banking Committee chairman Christopher Dodd, D-Conn., would create a new consumer regulator housed inside the Federal Reserve aimed at ensuring consumers get a fair shake with mortgages and credit cards. It will also push banks and financial firms to strengthen capital cushions and create a new process to take down giant failing companies and prevent future Wall Street bailouts.
The bill would also includes a version of the controversial rule proposed by former Fed chairman Paul Volcker and heralded by President Obama aimed at prohibiting financial firms from owning hedge funds or from proprietary trading on their own accounts.
"We must plug the gaps and elliminate the inefficiences that allowed this crisis to happen in the first place," Dodd said in a news conference.
Dodd wants to push the bill through his committee next week, to ensure it gets to the Senate floor before the summer, because midterm elections could complicate getting a final agreement. The House passed a version of regulatory reform in December.