The whole idea behind a single financial regulator was that it would end the practice of "regulatory arbitrage." Some have put forward the theory that various entities can indeed play regulators off one another: The SEC vs. the CFTC, or the FDIC vs. the OCC, and so on.

A few senators, led by Christopher Dodd, have been emphatic in their support of a single regulator, or something close. He would merge the OCC and the OTS and remove direct bank supervision powers from the FDIC and even the Federal Reserve. The new entity would consolidate everything into a new super regulator, with the ability--in theory--to see the big picture.

Reuters reports the American Bankers Association and the Independent Community Bankers of America have sent a letter to Congress arguing that "multiple federal regulators provides a helpful range of regulatory perspectives and is a healthy check against any one regulator neglecting its duties." We'll see where this goes. The momentum may be waning. 

For more:
- here's the article

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