An influential US Senate committee has proposed a sweeping overhaul of the country's regulatory architecture that would strip powers from the Federal Reserve and create a single banking regulator.

Chris Dodd, chairman of the Senate banking committee, yesterday presented a more radical vision of regulatory reform than that proposed by the Obama administration. The move ushered into the open a behind-the-scenes struggle between banks, policymakers and regulators.

Democrats lined up behind Mr Dodd as he presented the bill. But senior Republicans were missing from a press conference despite attempts by President Barack Obama to secure their support for one of his most important legislative goals.