Senator: Fed should not oversee banks

City A.M. Reporter
THE US Senate&rsquo;s top banking legislator has proposed plans to prevent a repeat of the credit crisis by creating a single US bank regulator and stripping powers from the Federal Reserve and Federal Deposit Insurance Corp.<br /><br />Senate Banking Committee Chairman Christopher Dodd called for the creation of three new government agencies, regulating over-the-counter derivatives, and cracking down on hedge funds, credit rating agencies and executive pay.<br /><br />According to the draft bill, released yesterday, he is keen to eliminate the Office of the Comptroller of the Currency and the Office of Thrift Supervision and have the Treasury Department units become the Financial Institutions Regulatory Administration.<br /><br />&ldquo;The financial crisis exposed a financial regulatory structure... unable to prevent threats to our economic security,&rdquo; Dodd said.