FACTBOX: Major US financial regulation initiatives

(Reuters) - The Obama administration and congressional Democrats are moving to tighten U.S. financial regulations to prevent another banking and market crisis.

Changes will affect banks, insurers, credit rating agencies, hedge funds, private equity firms, brokerages and exchanges, while extending the government's reach into the financial sector. The following are some of the major issues:

CREDIT CARDS:

The U.S. Congress on Wednesday approved a bill with tougher rules for the credit card industry, sending it to President Barack Obama, who was expected to sign it within days.

The bill would curb sudden interest rate increases on credit card accounts and curtail hidden fees. Much of the measure was opposed by the banking industry, which warned that it would reduce the availability of credit to consumers.

Political risk exposure: American Express (AXP.N), Bank of America (BAC.N), JPMorgan Chase (JPM.N), Capital One (COF.N), Citigroup (C.N), Discover Financial (DFS.N).

OTC DERIVATIVES:

The administration last week proposed cracking down on over-the-counter derivatives with a plan to move more trading onto exchanges, require central clearing, supervise dealers more closely and bring more transparency to an opaque market.

Political risk exposure: JPMorgan Chase, Bank of America, Citigroup, Goldman Sachs (GS.N), CME Group Inc (CME.O), Intercontinental Exchange (ICE.N).

SYSTEMIC RISK REGULATOR:

The Obama administration is expected to propose legislation soon calling for the Fed to play a central role in regulating systemic risk in the economy. No single agency is now formally designated to monitor systemic risk.

Alternative legislation has been introduced in Congress to establish an interagency council on financial stability.

UNWINDING FAILING FIRMS:

The administration has sent Congress a draft "resolution authority" bill to empower the government to seize and unwind large, failing financial firms that are not banks.

No clear procedure for this exists. A seizure would require approval of the Treasury Department, the Federal Reserve and Federal Deposit Insurance Corp, with White House consultation.

The Treasury and the FDIC would decide whether to offer financial aid to the seized firm or put it in conservatorship.