WASHINGTON (CNNMoney.com) -- A far-reaching Senate proposal to overhaul the financial system would create three new agencies, while wiping out existing ones, to monitor risky bank practices and protect consumers.

One of the new players would be a super regulator to oversee all banks and banking-like firms, according to draft legislation obtained by CNNMoney before its scheduled official release by Sen. Chris Dodd, D-Conn., at a Tuesday press conference.

The new entity, called the Financial Institutions Regulatory Administration, would take the place of the Office of the Comptroller of the Currency and the Office of Thrift Supervision.

The Dodd proposal goes further than a House regulatory reform bill, which would get rid of only the Office of Thrift Supervision.

The new Financial Institutions Regulatory Administration would also assume some of the oversight powers currently held by the Federal Reserve.

Dodd's idea for a single banking regulator is sure to be controversial. It was considered by the White House earlier but pushed aside. But the idea has support on the Senate Banking Committee.

Regulating too-big-to-fail banks: The Dodd plan would also create another new agency called the Agency for Financial Stability. That agency would be headed by a board of directors that included the Treasury secretary, the Federal Reserve chairman and other top regulators.

The stability agency would oversee the kinds of widespread risky practices that threaten the financial system. It also would wield new powers to break up too-big-to-fail companies.

The House bill, spearheaded by Financial Services Committee Chairman Rep. Barney Frank, D-Mass., proposes a similar oversight council. But in the House version, the Federal Reserve would keep much of its powers to monitor the largest firms and make sure they do things like beef up capital cushions.

The Dodd bill would create a third agency that is likely to be a major sticking point with Republicans and lobbyists for big banks: a Consumer Financial Protection Agency to oversee bank products like mortgages and credit cards. The House bill has a similar proposal.

Finally, the Senate legislation, like the House bill, would impose new restrictions on the derivatives market.

The most striking difference between the Senate proposal and the House bill is that it appears to reach further at stripping the Federal Reserve of oversight powers.

Next steps unclear: Dodd is expected to explain more about his proposal at a noon press conference. He is facing a tough re-election campaign next year and is said to feel pressure to push through a big piece of financial regulation.

However, the regulatory reform agenda has a long way to go.

Dodd's proposal, in particular, may have trouble in his own committee. The draft he's releasing will come out without a thumbs up from the ranking Republican Sen. Richard Shelby, R-Ala. Shelby's spokesman said Tuesday that Shelby had yet to see the bill.

That doesn't bode well for the prospect that financial legislation will move in the Senate, where bipartisan cooperation is crucial to the passage of controversial proposals.

Take, for example, the credit card restrictions that were enacted earlier this year. Veteran congressional watchers, and Dodd himself, suggested at the time that the bill wouldn't have passed the Senate without compromises to appease Republicans and even conservative Democrats.

"We believe the odds are against Dodd and Shelby cutting a deal before the committee votes. After the vote, we question if Shelby would have a political incentive to help Dodd score a victory and thus help him get re-elected," said Jaret Seiberg, an analyst for Concept Capital Washington Research Group.

On the other side of the Capitol, the House has made strides in recent weeks on regulatory reform and plans to return next week to take up some controversial amendments.

One such amendment is expected from Rep. Paul Kanjorski, D-Pa., who wants to empower regulators with new powers to break up companies deemed too big and threatening to the financial system.

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