A new bill aimed at tightening regulation of US banks is due to be unveiled. However, it remains unclear if it will succeed in gaining Senate support, with legislation presented by Democratic Senator Christopher Dodd, (PICTURED) chairman of the Senate Banking Committee struggling to win Republican backing.

Senator Dodd is moving ahead with the bill despite Republicans on the committee withdrawing their support following the Republicans victory in the Massachusetts Senate election in January, resulting in Democrats no longer enjoying the 60-seat majority required to defeat blocking.

Nonetheless, according to the Reuters news agency, Republicans on the committee have indicated they could still back the bill, if given more time to consider it.

Although the exact details of the bill - in its first form - will not be known until it is presented, it is widely expected to propose that the US central bank, the Federal Reserve, is given extensive new powers to regulate the commercial lenders.

It is also tipped to propose giving the government the power to seize and dismantle a large failing bank, or other such financial company.