As part of a sweeping package of financial services industry regulations revealed on Wednesday, June 17, the Obama administration has still opted to let states retain much of their current regulatory oversight.

A new department, the Office of National Insurance, has been proposed to act as a government watchdog to nearly every aspect of the industry.

As well, the federal government would further empower the Federal Reserve Board to oversee companies which might pose a future risk, and subject them to more stringent rules.

In a brief which preceded the day’s announcement, the proposal calls for a new regime which would “resolve nonbank financial institutions whose failure could have serious systematic effects.”

Regulation, however, would continue to primarily remain at the state level, and the new plan apparently stops short of outright federal regulation for the industry.

The Obama administration will also work to create a new “Consumer Financial Protection Agency,” which could cover products such as variable annuities.