The Obama administration’s plan for a “council of regulators” to monitor systemic risk is something of a sop to those who fear the Federal Reserve has won too much power in the regulatory overhaul, but Congress could yet give it teeth.

The new council, chaired by Tim Geithner, the Treasury secretary, would advise the Fed on its new role regulating systemically important institutions. It would be composed of the eight heads of the top regulators, including the new Consumer Financial Protection Agency. It would talk about emerging risks and how to co-ordinate policy, have its own staff at Treasury, and send a report to Congress once a year. But these responsibilities would not be supplemented with any power to enforce recommendations, or any veto over the Fed’s decisions.