Fed, FDIC reform eyed

WASHINGTON: The Obama administration is weighing a plan that would put the Federal Reserve in charge of monitoring systemic risk and give the Federal Deposit Insurance Corp authority to unwind insolvent bank holding companies, sources familiar with the proposal said yesterday.

The idea is being circulated to US lawmakers as they embark upon an overhaul of financial regulation, the two sources said. They spoke on condition of anonymity because the plan has not been widely shared.

Treasury Secretary Timothy Geithner has said the administration will come out with a comprehensive proposal in mid-June.