Only the Federal Reserve is fit to perform exams of the largest, most systemically important financial institutions, a senior Treasury Department official said Wednesday.

"With respect to the regulation of what we have called Tier 1 Financial Holding Companies, the Federal Reserve is the only regulatory body with the experience and with the deep and broad understanding of the capital markets," said Deputy Treasury Secretary Neal Wolin.

Next week, the Treasury will present its outline of rules to govern the trade of over-the-counter derivatives, Wolin told a conference of the American Bankers Association.

He also said that Treasury was determined to see the creation of a new regulator that will focus on protecting consumers from dangerous financial products.