The Financial Reform Task Force, a bipartisan, independent entity funded by the Pew Economic Policy Group, released its regulatory reform report, recommending much less authority for the Federal Reserve Board.

The report, released Wednesday, calls for stripping the Fed of its bank regulatory authority and creating a Financial Services Oversight Council to regulate systemic risk with the central bank acting as a consultant.

Although the report suggests stripping the Fed of its bank regulatory status, the central bank would have the authority to collect any information from financial institutions to monitor systemic risk.

It recommended higher capital standards for large complex institutions and breaking up certain complex institutions on a case-by-case basis. For systemically important institutions that fail, the group recommends a combination of a strengthened bankruptcy process and a backup resolution process.

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Corrected December 3, 2009 at 6:04PM: An earlier version of this story misstated the report's source. It was issued by the Financial Reform Task Force, a bipartisan, independent entity funded by the Pew Economic Policy Group, and does not represent the views of the Pew Charitable Trusts.