US plans finance system overhaul

So a farmer finds a peeping-tom in the bushes outside his house. The young perv was getting quite excited catching glimpses of the farmer's three young and beautiful daughters as they pranced around the house in various states of undress. The farmer doesn't care but his daughters do so he chases the guy off his property with a pitchfork. The next day the peeper is back at it so the farmer chases him off by swinging a shovel at him. The third day it happens yet again. His daughters are irate and demand that something be done to put an end to all this. So the farmer decides to hire someone to keep an eye out for peeping-toms and deal with them in an apropriate manner once found. He hires the guy who has been hiding in the bushes every night. When his daughters ask him why the farmer tells them, "Heck, he seems to know more about it than anyone else."

With that in mind, who would be the logical choice for financial oversight in the US?

The Fed would become 'market stability regulator' - allowing it to examine the books of any financial institution deemed to potentially threaten the stability of the financial system.

The overhaul will see a new organisation set up to take over the role of the five separate banking regulators.

Among other measures expected is the creation of a commission to establish stricter criteria for firms involved in the mortgage market.

The review into the sector began early in 2007 after the financial services industry complained that over-regulation from Washington meant US firms were not as globally competitive as they could be.

Centralize it all and hand it over to the Fed! Heck, they know more about it than anyone else.