How far will new finance rules go?

WASHINGTON: The Obama administration will tomorrow unveil its long-awaited plan to tighten US financial regulation, marking a test of its resolve to seize political opportunity and face down powerful interests.

Banks and financial firms are pushing hard in Washington to soften the plan, which has been under debate for six months in response to a severe credit crisis and a deep recession that is already going a long way toward reshaping capital markets.

Political realities on Capitol Hill, where the industry is deeply entrenched and lawmakers protect their turf, have already tempered some approaches for bringing the antiquated US regulatory system into the 21st century.