The House of Representatives' Financial Services Committee was due to take up amendments to the legislation creating the new watchdog, which faces fierce resistance from business groups, before voting to send it to the full House.

President Barack Obama has strongly supported the creation of such an agency, which would have sway over banks, credit cards, mortgages and other financial products, calling it the key plank of his financial regulatory overhaul effort.

Treasury Secretary Timothy Geithner underlined Tuesday that the administration hopes to see the proposal become law this year.

Both the House and Senate must approve the same legislation for it to reach Obama's desk to be signed into law.

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