The US Senate banking committee has proposed a significant change to the US bank regulatory system, calling for a single body to regulate banks. The move would diminish the powerful role of the Federal Reserve in this area and would replace overlapping regulation by several groups, including the Federal Deposit Insurance Corporation and smaller regulators, with one new agency. The proposed legislation would also create a consumer financial protection agency. The powerful banking committee, under the direction of Senator Chris Dodd of Connecticut, has pushed into the open a struggle that has been going on behind the scenes to reform the US banking system: Dodd Tuesday 10 November presented the committee’s reform proposal, which goes substantially further than President Barack Obama’s suggested reforms. Initial reactions indicate that opposition from several corners, but especially from the Federal Reserve, will make it a tough fight.

Links to other sites: Financial Times, New York Times, NPR, US Senate banking committee site

The US town of Fairfield Connecticut filed a lawsuit against Bernard Madoff to recoup some of its 42 million Dollar loss in pension funds. Connecticut Superior Court Judge Arthur Hiller filed an order Monday 13 April to secure 25 million in cash escrow accounts and properties owned by Madoff’s relatives and business partners. According to the town’s lawyer, Fairfield is the first party suing Madoff to obtain orders securing pledges of cash or property. Reuters, Connecticut Post