Brave new financial regulatory structure needed?

What to make of the pyrotechnics from a regulatory point of view? You could argue it two ways: When push came to shove, Henry Paulson and Tim Geithner somehow pulled off a workable rescue, aided in part by Bank of America's and Merrill Lynch's deal. In that sense, the system held, assuming the CDS markets don't stop functioning. At the same time, a big-name bank was allowed to fail--and that in itself is a victory. There's a lot of moral hazard on Wall Street. But given all this, there's a sense that the markets and investment banking have outrun the current regulatory structure. The OTC derivatives market is, from a regulator's point of view, a black hole. It's hard to even get good information. So we may see this be addressed once the crisis has passed. We'll likely see more oversight of investment banks by the Fed, whose primary duty now, on paper anyway, is commercial banking.

For more:
- here's a Washington Post article

Related Article:
The long-term fix for financial crises