There have been and still are three obvious problems with our regulatory structure.
1. Influence Peddling
2. Conflicts of Interest
3. Corruption
Reorganizing to more fully centralize the regulatory process is exactly the wrong thing to do.
It was often individuals and the individual States, standing against the pressure of federal regulators, which exposed unethical and illegal practices.
And as for the idea that the Fed can take on more of these functions, just remember what will happen the next time a Greenspan gets in that position.
The Fed is a private organization owned by the banks, too often opaque, and with a highly questionable independence and objectivity.
Reorganization to centralize bad decision making and conflicts of interests is right out of the 1990's corporate playbook.
If Obama has a pair of his own he will appoint someone like Eliot Spitzer, Ron Paul, or Dennis Kucinich as the new Chairman of the SEC or the CFTC.
