The plan would give major new powers to the Federal Reserve, according to a 22-page executive summary obtained by The Associated Press.
The Fed would be given broad authority to oversee financial market stability. That would include new powers to examine the books of any institution deemed to represent a potential threat to the proper functioning of the overall financial system.
Treasury Secretary Henry Paulson is expected to unveil a blueprint
on Monday for fixing gaps in the U.S. financial market regulatory
structure that have been exposed by the ongoing subprime mortgage
crisis.