Nov. 9 (Bloomberg) -- Senator Christopher Dodd will propose creating a single U.S. regulator that would strip the Federal Reserve and Federal Deposit Insurance Corp. of bank supervision authority as part of an overhaul of financial-industry rules, said a person familiar with the matter.

Dodd, chairman of the Senate Banking Committee, wants to eliminate the Office of the Comptroller of the Currency and the Office of Thrift Supervision and fold the Treasury Department units into the new bank regulator, according to the person, who spoke on condition of anonymity because the plan isn’t public. The Connecticut Democrat plans to release a draft of his financial regulation overhaul plan tomorrow.

Dodd’s measure aims to enact President Barack Obama’s plan for strengthening U.S. oversight of Wall Street to prevent a repeat of the worst financial crisis since the Great Depression.

The senator will also propose creating a Consumer Financial Protection Agency, a council of regulators to monitor large firms for disruptive effects on the financial community and the economy, and giving the FDIC power to unwind failed firms whose collapse in bankruptcy would shake the economy, the person said.

Dodd also plans to propose having firms repay the government for the cost of unwinding a large failed company instead of having the industry prepay into a fund that would serve that purpose. FDIC Chairman Sheila Bair and House Financial Services Committee Chairman Barney Frank support having companies prepay into a fund.

Staff members are still working on the proposal and the details may change, the person said.

To contact the reporter on this story: Alison Vekshin in Washington at avekshin@bloomberg.net.

Last Updated: November 9, 2009 18:42 EST