U. S. bank regulator Sheila Bair revealed to have some serious concerns related to the Senate's regulatory reform bill permits for bailouts of the largest financial firms.

"We will work closely with the Senate to make sure there are no loopholes around the carefully crafted resolution procedures", said Bair.

In addition, speaking to a community banker's conference on Friday, she added that the draft bill seems to permit such rescues via the Federal Reserve's emergency lending facility, known as its 13(3) authority.

The FDIC Chairman uncovers that a decision will be announced in the next 30 days related to terminate the unlimited guarantee for the accounts, which supplanted the traditional $250,000 insurance limit.

Bair, a critic of some of the government's massive rescues of Wall Street firms, is revealed to be one of the strongest advocates developing a "resolution mechanism" that would enable the government to dismantle a failing financial firm.

The Senate Banking Committee, chaired by Democrat Christopher Dodd, is slated to initiate amending its financial reform bill on Monday. The resolution mechanism proposal could be altered.