Warning bankers to stop "being stupid," the chairman of a U.S. House financial oversight panel outlined a 2009 reform agenda Tuesday that targets executive pay, hedge funds, predatory lenders and the troubled asset securitization system.

Major banks and Wall Street will have their hands full this year dealing with the wide-ranging legislative package that House Financial Services Committee Chairman Rep. Barney Frank said he wants to pull together by April.

The Massachusetts Democrat wants to create a federal systemic risk regulator and do more to protect investors battered by the crisis in the capital markets and a deepening recession.

Moving to seize political momentum won by Democrats in the November election, Frank told reporters at a news conference that the financial community needs to come to grips with "a deeply rooted anger on the part of the average American."

"They see a financial industry that helped cause these bad problems and they see themselves as the victims," he said.

"As I’ve said to a couple of bankers … people really hate you and they’re starting to hate us just for hanging out with you. You have to help us deal with that," he said. "You have to avoid being stupid — with the airplanes, the bonuses."

He reiterated that Congress will probably give the Federal Reserve the new job of monitoring risk across the financial system. He said would also consider establishing an investor protection agency, but added he will put off until later any proposals to realign existing financial regulatory agencies.

He said it was unlikely that the new systemic risk regulator would be separated from bank supervision duties.

Frank said he wants new limits on executive pay to reduce excessive risk-taking and sees the Federal Reserve playing a key role in this effort.

He said he wants new restrictions on irresponsible subprime mortgages and "inappropriate" debt securitization.

"Loss sharing" and "securitizer liability" would be part of the approach to reforming the securitization process, seen widely as a key contributor to the bursting of the real estate debt bubble, that sent the markets into a tailspin.

"We will get back to consumer protection," he added, citing reform of credit card practices as a reform target.

Frank also favors setting up a federal insurance program for municipal bonds. "I’m going to be pushing for that," he said.

He also said that "complete transparency for hedge funds" must be part of his legislative package on systemic risk.

On another front, Frank said he wants to look at ways to preserve mark-to-market accounting but try to contain its consequences to banks’ businesses.