UPDATE 1-US House Republicans offer financial reforms bill

* GOP measure counters Democratic regulatory reform plan

* Republican bill would strip Fed of some duties

* Bill would end taxpayer subsidies to Freddie, Fannie (Adds Neugebauer comment, bill details)

By Kevin Drawbaugh

WASHINGTON, July 23 (Reuters) - Republicans in the House of Representatives introduced their own legislation on Thursday aimed at reshaping U.S. financial regulation, embracing some measures similar to proposals from the Obama administration.

The legislation calls for establishing a Market Stability and Capital Adequacy Board for monitoring the financial system and "identifying risks that could endanger the stability and soundness of the system," according to a statement from Republican lawmakers.

It would provide for resolution of insolvent non-bank financial institutions "through the bankruptcy system," and set up an Office of Consumer Protection to streamline handling of federal consumer protection laws, the statement said.

In addition, the bill would strip the Federal Reserve of certain regulatory and supervisory duties to restore its focus on its "monetary policy mandate," it said.

The bill would also end taxpayer subsidies to Fannie Mae FNM.N and Freddie Mac FRE.N, as well as federal regulators' reliance on the use of credit ratings agencies, the statement said.

"We need a new direction in approaching financial regulatory reform," said Representative Spencer Bachus, the top Republican on the House Financial Services Committee.

Representative Randy Neugebauer, a senior Republican on the committee, said: "Our plan modernizes financial regulation to hold regulators accountable to consumers and allows for market discipline to work, rather than relying on the government to pick winners and losers."

The Obama administration is trying to overhaul banking and capital market regulation in response to the worst financial crisis in generations and with the economy in recession.

With the backing of congressional Democrats in most areas, the administration is proposing naming the Federal Reserve as a new systemic risk regulator for the economy; creating a new Consumer Financial Protection Agency; consolidating bank supervision; tightening bank capital standards; and giving regulators new powers to seize and shutdown large, troubled non-bank financial firms, among several other steps.