WASHINGTON -- Senate Banking Committee Chairman Christopher Dodd (D., Conn.) is finalizing a bill to rework financial market rules that is expected to be tougher against banks than previously expected, people familiar with the matter said. Though details of the bill could still change before it is introduced Monday, some details emerged Saturday as aides and White House officials conferred. The biggest winner in the bill appears to be the Federal Reserve, which would see its powers expand considerably. Large financial companies, particularly big banks, could emerge as the biggest losers. They would face much higher scrutiny from bank supervisors and potentially face sanctions for violating consumer protection rules by an autonomous new division within the Fed. Big banks could also be forced to comply with certain state consumer protection rules, a move that would be considered a huge win for consumer advocates and a blow to a financial industry that had lobbied against such a move. The bill's ultimate prospects are still cloudy.[Read more...]