Representative Paul Kanjorski, D-Pa., Wednesday released a summary of a proposal to give regulators power to break up financial firms that pose a risk to economic stability.

Kanjorski, the Democratic chairman of the House Capital Markets Subcommittee, said his proposal would give break-up power to a Financial Services Oversight Council.

He offered the plan as an amendment to a bill working its way through the full House Financial Services Committee.

Under his plan, the council would be required to consult with the president before taking any actions. Kanjorski said it would evaluate many factors in determining whether a firm posed a systemic risks, including size and leverage.

"If my amendment is accepted, financial firms would need to demonstrate to regulators that their failure would not undermine the financial stability of the American economy,” Kanjorski said in a statement.

He added he plans to coordinate with the European Union on the issue.

"After meeting with many European Union officials and members of the European Parliament earlier this year, I realized that we share many of the same concerns,” Kanjorski said.