WASHINGTON - THE Obama administration will target critical weaknesses in the troubled US financial system, such as thin bank capital cushions and eroded lending standards, when it proposes an overhaul of financial regulation this week, two senior officials said on Monday.

In the fullest summary to date of the administration's reform proposal, Treasury Secretary Timothy Geithner and White House economic adviser Lawrence Summers said the plan will also urge stronger consumer and investor protections and new powers for the Federal Reserve.

WASHINGTON - THE International Monetary Fund on Monday said the US economy was poised for stronger growth than previously thought, with a 'solid' recovery from recession in mid-2010, but cited risks, notably from the housing crisis and rising interest rates.

NEW YORK - WALL Street stocks tumbled on Monday after the Group of Eight finance chiefs warned the global economic outlook remained uncertain, despite encouraging recovery signs.

The Dow Jones Industrial Average dropped 135.06 points (1.53 per cent) to 8,664.20 in opening trades.