The Fed will be more, or maybe less, powerful

Speculation over the future US financial regulator continues.

The single systemic risk regulator demanded by US Treasury secretary Tim Geithner will end up as a multi-agency compromise with most power residing at the Federal Reserve, The FT reports.

But Reuters said a group of Republican lawmakers had plans to reform financial regulation by reining in the Federal Reserve, expanding the bankruptcy code and merging two bank regulatory agencies.

And Bloomberg said The Fed may find itself subject to more congressional scrutiny and have some of its powers to intervene in the financial markets and the economy clipped.

Geithner is to reveal his plans for the regulator along with the new package of regulatory reforms next Wednesday.