The Obama administration is expected to propose legislation to Congress by June calling for the U.S. Federal Reserve to regulate systemic risk in the economy, three trade association sources said on Friday.

National Economic Council Director Lawrence Summers, a senior adviser to President Barack Obama, is expected to lead a renewed administration effort on regulatory restructuring, now that the bank stress tests are completed, sources said.

The administration is committed to enacting reforms into law this year, said the sources, based on a briefing given by administration officials to industry executives.

Treasury Secretary Timothy Geithner participated in part of the briefing. Participants said a specific timetable was not presented, but that the House of Representatives Financial Services Committee was expected to approve a bill by July 4.

Committee Chairman Barney Frank, a Democrat, has said he wants to enact regulatory restructuring this year, as well.

(Reporting by Kevin Drawbaugh, Rachelle Younglai and Karey Wutkowski; Editing by Leslie Adler)

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