Republicans and the financial services industry are less enthusiastic about the plan, which they fear would imposeThe Obama administration sent Congress a draft bill on Tuesday to create a new agency with sweeping powers to impose tough consumer protection rules for banks, mortgage lenders and other financial firms, setting up a summer-long political brawl over the plan. a regulatory burden that will add costs, reduce availability of credit and stifle innovation.

They also fear that stripping existing agencies of consumer authority could reduce their effectiveness.

"We completely agree with and applaud the emphasis the administration has placed on enhancing consumer protection. Our concern is that a new agency, by its very nature, might not effectively serve that objective," said John Dearie, executive vice president at the Financial Services Forum, a lobbying group that represents the largest U.S. financial institutions.