The Senate and the Obama administration are close to agreeing on forming a new regulatory council, led by the Treasury Secretary, to identify systemic risk to the nation's financial system, the New York Times on its Web site cited officials as saying Wednesday.

"The idea of having a council, with the secretary of the Treasury as chair, and the Fed chairman or his designee as vice chair, is that you're getting an early-warning system," chairman of the Senate Banking Committee, Christopher J. Dodd, Democrat of Connecticut, told the newspaper.

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