Proposals included in the draft legislation

Highlights of the 1,136-page draft bill for financial regulatory reform released Tuesday by Sen. Christopher J. Dodd (D-Conn.):

-- Single federal bank regulator -- Would combine the existing bank regulators, including the supervisory powers of the Federal Reserve and the FDIC, into an independent agency that would oversee all the nation's banks.

-- The Agency for Financial Stability -- Would be a new, independent agency responsible for identifying, monitoring and addressing systemic risks throughout the financial system. Would have the authority to set standards aimed at discouraging firms from growing so large and complex that their downfall would pose a threat to the nation's financial stability.

-- Consumer Financial Protection Agency -- Would be a powerful, independent new regulator to oversee mortgages, credit cards and other such loans to ordinary Americans.

-- Resolution authority -- The bill would create a mechanism for the government to shut down large, troubled financial firms in an orderly manner. Would impose strict standards on companies as they grow bigger and more complex. Would require them to periodically submit plans for a speedy, organized dissolution should they go under.

-- Derivatives -- Over-the-counter derivatives would be regulated by the Securities and Exchange Commission and the Commodity Futures Trading Commission. More transactions would be cleared through centralized clearinghouses and traded on exchanges, and all trades would be reported in an attempt to provide transparency to the vast derivatives market.