U.S. May Strip SEC of Powers in Regulatory Overhaul

Bloomberg reports:

The Obama administration may call for stripping the Securities and Exchange Commission of some of its powers under a regulatory reorganization that could be unveiled as soon as next week, people familiar with the matter said.

The proposal, still being drafted, is likely to give the Federal Reserve more authority to supervise financial firms deemed too big to fail. The Fed may inherit some SEC functions, with others going to other agencies, the people said. On the table: giving oversight of mutual funds to a bank regulator or a new agency to police consumer-finance products, two people said.

This is interesting.Since the Fed is a private corporation that's never had a full audit by Congress:exactly how is the new regulation going to be monitered?