US officials have proposed an overhaul of financial market regulation, giving much greater power to the Federal Reserve.
Under the plans, the Federal Reserve would gain oversight of Wall Street investment banks and stockbroking firms, which will have access to the central bank's emergency lending facilities.
The sweeping changes come in the wake of the crisis caused by banks' risky mortgage lending.
But US Treasury Secretary Henry Paulson said today that the revamp of the financial regulatory landscape was not intended as a response to current market turmoil and should not be implemented until the difficulties are resolved.
The plan also calls for a new federal panel that would oversee the state systems for regulating participants in mortgage lending.
It would eliminate the differences between supervision of banks and savings and loan institutions, creating a single entity to regulate both, and merge the Securities and Exchange Commission with the Commodities Futures Trading Commission.
'Government has a responsibility to make sure our financial system is regulated effectively. And in this area, we can do a better job,' Paulson said in unveiling the plan.
He said the plan was aimed at addressing 'complex, long-term issues' to help make markets more efficient and competitive.
