The recent regulations presented by Senate Banking Committee Chairman Christopher Dodd are an edited version of the bill passed by the senate in December and comprises 6 major points.

The first proposes that a Consumer Financial Protection Bureau should compile and impose the rules aimed at protecting the seekers from lender-exploitation.

The second one seeks a Financial Stability Oversight Council, to synchronize the efforts of the federal government in identifying the risks surrounding the financial system.

The third one suggests the enforcement of a new course of action which leads to the liquidation of the tottering financial firms.

The fourth one aims at assigning the responsibility of keeping track of errors occurring at the Credit-rating agencies

The fifth one recommends the banks to mark new limits on trading and investment ventures.

The sixth one proposes the restoration of the structure of Federal Banking Regulation.

Despite the incorporation of the proposals of the Republicans in the new legislation, it is facing a severe opposition from them.

The new bill will make President of the Federal Reserve Bank of New York a White House Appointee.