WASHINGTON — Senate Republicans on Tuesday circulated an alternative consumer protection proposal that would leave the responsibility to enforce consumer protection laws for banks and thrifts with existing regulators.

The proposal, which will be offered as an amendment to financial regulatory overhaul legislation, calls for the creation of a new division within the Federal Deposit Insurance Corp. to supervise and enforce consumer laws for some non-bank mortgage originators "and other financial services providers who have violated the consumer protection statutes," according to a summary. A White House-appointed director would oversee the new division, which would have to receive the approval of the FDIC's five-member board before issuing new rules or regulatory orders.

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