The Treasury Department on Monday plans to unveil a series of recommendations that would radically reshape the regulation of the US financial services industry, giving broad new powers to the Federal Reserve to tackle systemic risk.

The move comes amid growing pressure in Congress to overhaul financial regulation in the US, after the credit crisis exposed significant lapses in the government’s ability to monitor Wall Street and prevent it from making overly risky bets on mortgages. Some of the largest institutions suffered multi-billion dollar losses, and the Fed this month was forced to take the dramatic step of offering emergency cash to investment banks.