Christopher Dodd, the chairman of the Senate Banking Committee, gave a proposal to create a Bureau of Financial Protection inside the Treasury Department to regulate mortgages, credit cards, payday loans and other consumer products.

According to the proposal, Mr. Dodd insisted that the bureau have a director appointed by the president of United States, a dedicated budget comprised of assessments on large banks and nonbank lenders, and authority to adopt regulations.

"I realize it may not be possible to get the 60 votes needed to push through a stand-alone agency," said Christopher Dodd yesterday.

According to Dodd, the consumer regulator needs a consultative role with banking supervisors to avoid conflicts. Those regulators also could appeal the proposed rule to a new interagency council tasked with detecting systemic risks.

If the proposal of Dodd would be accepted, it would exempt banks and credit unions with assets of $10 billion or less. It would give the bureau the power to enforce regulations on large banks and nonbank lenders, in conjunction with other regulators, but would largely have to defer to other regulators in the case of smaller banks.