Lobbyists and agency rivals fight to shape the new Wall St

The Obama administration is grappling with inter-agency turf wars and an intensive rearguard lobbying effort by Wall Street as it tries to finalise its sweeping reform of financial regulation in the US.

Officers at the Treasury are hoping to announce a new framework of inter-locking agencies, including increased powers for the Federal Reserve to intervene to prevent firms growing so big that they risk the stability of the financial system. But the signs point to a messy compromise that could dilute some of the initial hopes for a comprehensive, get-tough regime.