These are the main points of bill passed by the US Senate which calls for the most sweeping overhaul of financial industry rules since the 1930s:
CONSUMER PROTECTION
The bill would create a new Consumer Financial Protection Bureau aimed at curbing risky practices in the industry including mortgages, credit cards and other financial services.
REGULATION
A new Financial Stability Oversight Council would bring together seven financial and banking regulating agencies.
A shak-eup of the regulatory system calls for the Federal Reserve to supervise all banks and financial institutions with assets above $50 billion; the Federal Deposit Insurance Corporation will regulate state-chartered banks with assets below $50 billion and the Office of the Comptroller of the Currency will oversee federally chartered banks of that size.
The Office of Thrift Supervision is eliminated.
TOO BIG TO FAIL
The bill gives regulators authority to set stricter capital standards to large financial institutions whose failure could threaten the financial system. Even non-bank financial firms such as AIG could in some cases be regulated by the Federal Reserve if deemed to pose a "a grave threat" to financial stability.
An 'orderly liquidation' would be set up to unwind failing 'systemicallysignificant financial companies'.
DERIVATIVES
New regulations would be set up for complex financial instruments known as derivatives, including credit default swaps, and banks would not be able to trade these.
HEDGE FUNDS
Hedge funds that manage over $100m would be required to register with the Securities and Exchange Commission as investment advisors and disclose financial data needed to monitor systemic risk and protect investors.
RATING AGENCIES
A new office would be set up to oversee credit rating agencies, aimed at eliminating the conflicts of interest of these firms that are paid by the issuers of financial products.
EXECUTIVE COMPENSATION
Shareholders would get a non-binding vote on executive pay practices, aiming at shedding light and discouraging risky pay practices and linking executive pay to company performance.
ROOTING OUT ILLEGAL PRACTICES
'Whistleblowers' who report violations of securities laws could be rewarded with up to 30% of funds recovered by regulators.
FEDERAL RESERVE
Among reforms aimed at the central bank, congressional auditors would be able to examine any emergency lending programmes; banks that are regulated by the Fed would no longer be able to vote for directors of the regional Fed banks - the New York Fed president would be appointed by the president.
A new job of vice chairman for supervision would report to Congress on financial monitoring.
