House Democrats agree to consumer watchdog in Fed

WASHINGTON, June 21 (Reuters) - Democrats in the U.S. House of Representatives have agreed to a Senate proposal to house a new consumer financial watchdog agency in the Federal Reserve, a counterproposal issued on Monday said.

House Democrats negotiating final changes to a sweeping bill to reform U.S. financial regulations will also seek to insert a provision to subject pay-day lenders, check cashers and private student loan providers to supervision by the proposed new agency, the counterproposal released by Representative Barney Frank said.

House and Senate negotiators are set to resume talks over the wide ranging reforms on Tuesday. (Reporting by Kevin Drawbaugh; Editing by James Dalgleish)