Treasury secretary Timothy Geitner defended the cornerstones of the administration’s financial regulation plan at a meeting of the House Financial Services committee on Friday morning.

The Federal Reserve is to have certain of its functions taken over by a new consumer protection agency, while The Fed is, by turn, to have a larger role in overseeing large institutions that could pose systemic risks if they became troubled.

The plan is being challenged by the financial services industry and its allies in Congress. There are lawmakers baffled by this dispute with the Obama adminstration, and Mr. Geitner sees this dissension as regulators protecting their powers.

For more please see today’s New York Times for an up to date.