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Francis Cianfrocca joins Ben Domenech for the Thursday, November 5th edition of Coffee & Markets, a series of brief morning podcasts on politics and the marketplace, now appearing as well on WashingtonTimes.com.

Today’s podcast focuses on Sen. Chris Dodd’s proposal for a vast overhaul of the banking regulatory framework, weakening the Federal Reserve, and Rep. Barney Frank’s letter putting pressure on bank regulators to loosen up capital flows.

Items discussed include:

Fallout From Rep. Frank’s Letter

Dodd’s Reform Plan Sparks Disagreement

A key Senate lawmaker is readying legislation that would dramatically redraw how the financial system is regulated, setting the chamber on a collision course with both the House of Representatives and the Obama administration, which have championed markedly different approaches.

The bill, which is being readied by Senate Banking Committee Chairman Christopher Dodd (D., Conn.), would strip almost all bank-supervision powers from the Federal Reserve and Federal Deposit Insurance Corp., according to people familiar with the matter. In their place, the bill would create a new agency in charge of supervising all banks and bank-holding companies, even the country’s largest and most complex institutions.

Mr. Dodd’s proposal also would create a powerful council of regulators, overseen by an independent White House appointee, charged with monitoring risks to the financial system.