Big US companies ranging from Wall Street banks to insurers and General Electric yesterday faced fundamental changes in the way they are regulated as President Barack Obama revealed proposals for what could be the biggest regulatory reform since the 1930s.

The plan, which has to win congressional approval, would give the Federal Reserve new powers to oversee companies whose failure would endanger the banking system – a category that includes not only traditional lenders but any company with significant financial operations such as GE.

Remuneration and profits at Wall Street and beyond could be hit by the reforms, which will see the administration attempt to tighten capital and leverage rules at global banks in negotiation with the Basel Committee on Banking Supervision.