Fed may have to share oversight power: Frank

WASHINGTON (Reuters) - The Obama administration may have to compromise on its proposal to put the Federal Reserve in charge of monitoring Wall Street firms that could pose the biggest risks to the U.S. economy, a key lawmaker said on Monday.

Representative Barney Frank, the powerful chairman of the House of Representatives Financial Services Committee, also predicted that, overall, the White House was likely to get much of what it wants in sweeping legislation to overhaul the U.S. financial regulatory system.

A plan to give to the Fed new powers to monitor "systemic risk" posed by large financial institutions is one of the most controversial elements of President Barack Obama's plan to rewrite Wall Street regulations.

Critics of the idea fault the Fed for failing to anticipate the 2008-2009 financial crisis and contend it should not be given such a broad regulatory role.

Frank said legislation could potentially require the Fed to share some of the oversight powers with other regulatory agencies.

"As to the systemic risk regulator, there's agreement on who should do it," he told Reuters in an interview.

"I do think that the Fed will have to share that power more than his (Obama's) original plan. Otherwise, I think the essential elements are in very good shape."

Frank attended a speech by Obama in New York on Monday in which the president tried to reinvigorate the regulatory plan that has lost momentum in Congress in recent months, despite the president's goal of getting a deal on it by year-end.

Frank said he believed Obama was committed to doing the follow-through needed to get a deal.

"I've been working with him (and) working with his staff. It's a very high priority for him," Frank said after flying back to Washington with the president. "We've had good cooperation and we will continue that."

(Editing by John O'Callaghan)