Regulatory Overhaul

http://online.wsj.com/article_email/SB124934399007303077-lMyQjAxMDI5NDA5NDMwNDQzWj.html

So, where are we with with an improved approach to regulation, something that beats Alan Greenspan's "...financial markets are self-regulating"? Evidently the administration's "plan" is faltering (see the input from the Wall Street Journal attached). Since the "plan" was unveiled in June, it has been criticized by the financial services industry, as well as by financial services regulators wary of encroachment on their turf.

Why am I not surprised?

The administration's proposal would give the Fed broad discretion to supervise any major U.S. financial company and would also create a "financial services advisory council" to coordinate policy and help resolve disputes among regulators. How power would be balanced between the Fed and this entity has emerged as a flash point, one that administration officials debated. I'm "shocked", "shocked". Does this mean that regulatory officials don't want to sit around the camp fire and sing songs of togetherness?

The Fed has been weakened in the resolution of this mess because of its role in allowing AIG to pay large bonuses to employees. Hopefully, this will get resolved soon, but the dynamics of the situation don't look promising.