FACTBOX: Keys to U.S. Sen Dodd's financial regulation bill

WASHINGTON - U.S. Senate Banking Committee Chairman Christopher Dodd has released draft legislation to overhaul financial regulation.

The 1,136-page document calls for bold changes beyond what the Obama administration and House of Representatives have proposed. Here are some of the key proposals:

CONSUMER FINANCIAL PROTECTION AGENCY:

* Backs Obama proposal to create agency to regulate credit cards, mortgages, other financial products

* Strips consumer protection duties from existing agencies, including Federal Reserve, Comptroller of the Currency, Office of Thrift Supervision, Federal Deposit Insurance Corp, National Credit Union Administration, Federal Trade Commission.

* Lets states pass tougher consumer protections, preventing federal regulations from preempting stronger state laws.

FINANCIAL STABILITY AGENCY

* New agency to police systemic risk in economy.

* Agency to discourage firms from getting too large by imposing burdens on them as they grow.

* Would empower regulators to break up large, complex companies if they pose a threat to U.S. financial stability

NEW SUPER BANK REGULATOR

* New Financial Institutions Regulatory Administration (FIRA) would have a board including FDIC chairman, Fed chairman, three presidential appointees.

* Office of Thrift Supervision and Office of the Comptroller of the Currency would be abolished.

* FIRA would strip FDIC and Fed of direct supervisory and regulatory powers over banks and bank holding companies.

RESOLUTION AUTHORITY TO UNWIND TROUBLED FINANCIAL FIRMS

* FDIC would have primary authority to dismantle troubled financial giants, while SEC would have similar authority over systemically important broker-dealers.

* Cost of unwinding a troubled firm would be recouped after rescues through assessments on other financial firms.

REGULATION OF OVER-THE-COUNTER DERIVATIVES

* Requires central clearing and exchange trading for derivatives that can be cleared and provides a role for both regulators and clearinghouses to determine which contracts should be cleared.

* Swaps not cleared through a central clearinghouse or traded on exchanges subjected to margin, capital requirements.

* All trades to be reported so that regulators can monitor potential risks.

HEDGE FUNDS

* Advisers to hedge funds worth over $100 million will be required to register with SEC, with advisers giving information about trades and portfolios to regulators.

* States could supervise investment advisers who manage $100 million or less in assets. That increases threshold from the current $25 million.

INSURANCE

* Creates office within Treasury Department to monitor insurance industry, coordinate international issues.

CREDIT RATING AGENCIES

* Establishes SEC Office of Credit Rating Agencies.

* Sets new rules for internal controls, independence, transparency and penalties for poor performance.

* Allows investors to sue ratings agencies for "a knowing or reckless failure to investigate or to obtain analysis from an independent source."

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