Sen. Bernard Sanders dropped a proposal to audit the Federal Reserve’s monetary policy that the central bank’s chairman, Ben Bernanke, had said posed a threat to its independence.

The Vermont independent narrowed the scope of an amendment to financial-overhaul legislation to “a one-time audit of all loans and other financial assistance” starting in December 2007. He also included a review of how Fed bank directors are appointed.

Senate Banking Committee Chairman Christopher Dodd (D.-Conn.) threw his support behind the revised legislation after opposing previous versions that called for broader audits of the Fed decisions.

Fed Chairman Ben Bernanke had opposed earlier versions of the Sanders amendment.

Senators are debating the most sweeping overhaul of financial regulation since the Great Depression.