Dodd's Plan to Fix the Banks

Senator Chris Dodd has often been charged with being too cozy with the banks. How’s this for compensation? According to The Wall Street Journal, Dodd is proposing a financial-regulation bill that would strip the Federal Reserve’s and the FDIC’s regulatory powers and vest them in a new agency, which would supervise all banks and bank-holding companies. He would also create a council of regulators to monitor systemic risks. The Journal calls the plan “an extreme position” that is “likely to face major resistance.” A final agreement on the bill is months away.