Indeed, such heavy-handed regulation would breed corruption, loopholes, lobbying and the very kind of perverse incentives and distortions in the market that led to Fannie and Freddie securitizing $1 trillion in bad social loans. "It's Fannie Mae and Freddie Mac all over again" said Wallison. The new regulatory agency can regulate banks, bank holding companies, insurance companies, hedge funds, finance companies and any other kind of company that might be designated too big to fail. Full Article at Investor's Business Daily