Single banking regulator is being worked out by Obama’s administration

As the Wall Street Journal reported late Wednesday, Congress is to create single bank regulator in order to supervise the banking sector. It’s appeared to be a move to avoid future failures in overseeing the banking sphere in the situation of the global economic recession, as it ballooned out of control last year.

The new agency is to police financial products provided to customers and to enhance investor protection regulator, however a lot of the plan terms could still be changed before a formal recommendation is made to Congress in mid-June.

The new bank regulatory agency could prove controversial as it would consolidate the Office of the Comptroller of the Currency and the Office of Thrift Supervision and strip supervisory powers from the Federal Reserve and the Federal Deposit Insurance Corp, according to the report. The other powers could be gained by Fed and the FDIC. Nevertheless, White House representatives see Fed to be able to supervise the economy systemic risks, and they also want FDIC to have new powers to take large financial companies that aren't banks into receivership.

The new bank regulator agency is anticipated to become a major plank in a proposal that Treasury Secretary Timothy Geithner and White House officials send Capitol Hill in a few weeks with the goal of overhauling supervision of financial markets, as the Wall Street Journal says.