Many of the regulatory changes that are being urged this year were first suggested by former Treasury Secretary Henry Paulson. His plan was set aside, however, as it came before a Democrat-controlled Congress in the last year of the Bush presidency and before the worst of the financial crisis hit.

The House Financial Services Committee could take up the new legislation as early as next week, as some Democrats support the bill.

"I'm not prejudging the issue; I'm just saying at this point in time I want to look at it more carefully," House Majority Leader Steny Hoyer told reporters.

However, Republican lawmakers expressed caution over the financial reform proposal. Some accused the White House of "an unprecedented grab of power."

"Before that occurs, there ought to be a real debate about whether we should give that authority to the treasury secretary," House Minority Leader John Boehner said.

"We do need to have some control over it. But I would hope we could all work together on making sure that is done and done correctly at some point in the relatively near future," said Delaware lawmaker Michael Castle.

At a prime-time news conference Tuesday, the second he has held since taking office in January, President Barack Obama also urged Congress to grant his government the new authority.

He said such power could have lessened the problems at AIG and that he anticipates "strong support" from the public and Congress for the new authority.

"We should have obtained it much earlier so that any institution that poses a systemic risk that can bring down the financial system, we can handle and we can do it in an orderly fashion, that quarantines it from other institutions," Obama said.

FDIC Chairwoman Sheila Bair expressed support for an expansion of her agency's responsibilities.

"Due to the FDIC's extensive experiences with resolving failed institutions and cyclical nature of resolution work, it would make sense on many levels for the FDIC to be given this authority working in close cooperation with the Treasury and the Federal Reserve Board of Governors," Bair said in a statement.

(Xinhua News Agency March 27, 2009)