President Obama addressed the future of federal financial services regulation briefly before heading to California.

Obama said today that he and members of his White House Economic Council have begun discussions with leading congressional players, including Rep. Barney Frank, D-Mass., about the possibility of introducing legislation that would create a new regulatory entity along the lines of the Federal Deposit Insurance Corp.

The new entity would give the federal government more authority over financial institutions such as American International Group Inc., New York, Obama said.