The Federal Reserve and Securities Exchange Commission (SEC) are finalizing an agreement to start the process of redrawing how Wall Street is regulated. The agreement, which could be announced this week, aims to fill gaps in regulatory oversight and will increase cooperation between the central bank and the SEC in the wake of the near-collapse of Bear Stearns Cos.

The two would share information including data regarding settlements, trade and positions. The SEC will also get information from the Fed on short-term financing from the banks that clear trades and hold collateral for the securities firms. Under the agreement, the Fed would be able to see an investment bank's trading positions, its leverage and its capital requirements, the Journal said. The change will expand the Fed's oversight of the financial system to include investment banks. Currently, the SEC oversees brokerage firms while the Fed supervises bank holding companies and commercial banks.