US politicans have, after marathon discussions that lasted 20 hours, agreed on a draft legislation that could lead to radically rewriting banking rules.

The Wall Street Reform Act "takes steps to protect consumers and to put a leash on financial institutions on Wall Street," Al Jazeera's Nick Spicer, reporting from Washington, said on Friday.

The legislation was finalised on Friday by a joint committee of the House of Representatives and the Senate.

The lawmakers are expected to vote on the legislation next week.

"There will be a winding down of the fees banks nickle and dime consumers with, and banks will no longer be able to use depositers' money, the money that you and I might put in a bank in the United States, to speculate on Wall Street," our correspondent said. 

Drafting this legislation makes for good domestic politics and will help Barack Obama, the US president, as he travels to Canada for the G20 summit, our correspondent said.

"I think politicans are riding, surfing, on a wave of anger against Wall Street, against the bailout. People from across the spectrum, right and left, and angry about what happened."