A recently disclosed plan that could strip certain powers from the Securities and Exchange Commission has created the first public wedge between the Obama administration and SEC Chairman Mary Schapiro.

The Obama administration is considering a proposal that would give the Federal Reserve more authority and cause it to take over some functions currently performed by the SEC. Among the responsibilities that could move away from the SEC, Bloomberg reports, are oversight of mutual funds. In addition, there is discussion of creating a new agency to police consumer-finance products.

Not surprisingly, SEC Chairman Mary Schapiro came out today against the plan to create a new financial watchdog to protect consumers. She stated that doing so would reduce the SEC's authority and damage government protection of investors, CNBC reports:

"I question pretty profoundly any model that would try to move investor protection functions out of the Securities and Exchange Commission," Schapiro said Wednesday. That couldn't be done "without really damaging the fabric of the entire investor protection regime," she told reporters.

Schapiro's comments are believed to be her first public disagreement with the Obama administration over the reshaping of financial regulation.