It's a Herculean task: revamping a financial regulatory system dating back to the Civil War to deal with 21st century crises imperiling the nation.

Under an ambitious Bush administration plan unveiled Monday, the Federal Reserve would take on the unwieldy role of uber cop in charge of financial market stability. Other regulatory agencies could see their influence diminished.

The proposal won't fix the host of economic and financial problems that threatens to plunge the United States into a deep recession, but the plan might help guard against future troubles. It would take years and a lot of political wrangling — in Congress, on Wall Street, in statehouses and elsewhere — to implement all the changes envisioned.

Yet the initiative casts a fresh spotlight on the best way to protect the nation from financial catastrophes. That debate probably will take center stage in the next president's administration.

Asked if President Bush's goal was to get the revamp approved before he leaves office, press secretary Dana Perino acknowledged the enormity of the plan. "We'll have to see. It is a big attempt," she said.

The plan would greatly expand the role of the Fed to oversee the stability of the entire financial system, including commercial banks, investment banks, insurance companies, hedge funds, private-equity firms and others.

Rather than checking on the health of a particular organization, the Fed's focus would be on whether a firm's or industry's practices pose a danger to overall financial stability, said Treasury Secretary Henry Paulson, the former head of investment giant Goldman Sachs, whom Bush put in charge of the plan.

"It will have broad powers and the necessary corrective authorities to deal with deficiencies," Paulson said.

Kelly Matthews, economist and executive vice president of Wells Fargo & Co. in Salt Lake City, said the proposal will face a lot of debate.

"By and large, it is probably a good first step," he said. "We all recognize we can make some improvements, but we want to keep separation in our minds about what needs to be done immediately to address the mortgage situation, and not get that intertwined or mixed up with regulatory reform."

Former U.S. Sen. Jake Garn said Monday that he likes the concept, having spent 18 years on the Senate Banking Committee with oversight of the various agencies.

"In general, to consolidate and streamline would make sense to me," Garn said. "There's always been some confusion between the different agencies."

Kim Smith, a former Goldman Sachs executive who teaches at Brigham Young University about financial markets and risk management, said the proposal "makes sense as a way of rationalizing all the various organizations that are involved in regulating the markets." Combining the Commodity Futures Trading Commission and the Securities and Exchange Commission is one example, he said.