New rules intend to give regulators unlimited powers to do what corporate experts themselves have always found difficult to accomplish. Yet, politically-oriented bureaucrats are attempting to undertake the tasks anyway.
A Treasury committee would first determine which financial entities pose systemic risk to our economic system. This, of course, is impossible in the real world, where risk is hard to identify. The target companies would then be subjected to added regulation by the Federal Reserve.
This cannot be easily done in the political world either. Determining potential systemic risk is 100% conjecture. What steps to take, and when to take them, in order to eliminate conjectured problems, is not a practical matter.
Few experts in the business world have had the foresight to make the decisions for past incidents. Rarely do bureaucrats at the Fed or Treasury have the ability or objectivity.
Besides: The Fed and the Treasury already have done a poor job with the past financial meltdown and bailout function up to now.
Why expect any better of them in the future?
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