12 Nov 2009

Tough banking rules proposed by US senator

9:01 am on 12 November 2009

The head of America's influential senate banking committee is proposing new rules for America's financial regulators, who have been blamed for not spotting the seeds of the country's financial collapse.

The new proposals would cut the power of America's Central Bank, create a new independent consumer protection agency, a new council of regulators, and introduce regulation for derivatives, the BBC reports.

The committee's chairman, Democratic Senator Christopher Dodd, says the the proposal would make financial institutions more transparent, responsible and accountable.

There has been no sign yet that the proposal has any support from Republican senators.