It's been more than a year since Wall Street collapsed, and Congress finally is moving forward with reforms to prevent more abuses in the banking industry.

One of the key elements is a proposal by President Obama to create a Consumer Financial Protection Agency. This new entity, as proposed, should have the authority to act quickly on consumer complaints and order regulators to examine the practices of banks and credit card companies.

But Senate negotiators are proposing to house this agency within the Federal Reserve, which is responsible for the overall health of the banking industry. That would be an inherent conflict with the mission of protecting consumers.

Senate Banking Committee Chairman Chris Dodd, D-Conn., has said bipartisan legislation should be ready to be unveiled this week. Dodd initially favored a stand-alone consumer-protection agency, but acquiesced to the Federal Reserve proposal by Sen. Bob Corker, R-Tenn.

Banks have been lobbying heavily against this extra layer of regulation. They're opposed to government intrusion, unless they need taxpayers to bail them out. A new watchdog is one of the prices they should pay for their past recklessness.

Currently, 10 federal agencies have various consumer-protection powers, which dilutes their effectiveness. That's the way the banking industry wants it. An independent entity would do a better job of shielding consumers from predatory practices.

The Fed is a poor choice because it failed to crack down on lenders adequately during the subprime-mortgage boom, which helped bring about the worst financial crisis since the 1930s. Consumer advocates began raising red flags as early as 2002, but the Fed was slow to act.

The Fed finally completed tougher mortgage-lending rules in 2008, but by then the crisis was full-blown. Among the casualties on Wall Street were Lehman Bros., which went bankrupt; Bear Stearns, bought up by JPMorgan Chase; and Merrill Lynch, taken over by Bank of America.

The central bank has done a better job lately by imposing tougher rules on credit card companies, but it's not set up to be the driving force of consumer protection.

Obama's proposal is part of the largest overhaul of the financial industry since the Great Depression. The new rules, proposed by former Fed Chairman Paul Volcker, would also allow the government to regulate how derivatives are traded, give it the authority to dismantle failing financial firms, and enhance oversight of banks.

As part of that new strategy, an agency to protect consumers in financial dealings should be independent, and have enough power to impose meaningful regulation on banks and credit card companies.