The banking industry is one of the most heavily regulated businesses the the country. Every small bank branch is regularly visited by government auditors, and the big boys in Washington, the Federal Reserve, and the Department of the Treasury keep their ever vigilant eyes on the big picture.
In addition to the government regulation the credit markets are monitored by outside watchdogs like Moody’s, S&P, and Fitch, none of which foresaw the consequences of the housing bubble. Despite all the regulation and oversight, the recent financial meltdown occurred.
Now the government responds with more layers of regulations and oversight. Somehow this doesn’t make sense to me. Maybe it would be better if they threw everything out and started over instead of adding to an already incomprehensible web of rules.