So, we have the government looking to legislation giving them the authority that the FDIC does when it shuts down banks for not bank entities, such as bank holding companies and hedge funds.

And in related news, the FDIC is looking for additional authority to acutally write regulations, a function which is currently does not have.

It has strong enforcement powers, but, “but only the Federal Reserve, Office of Thrift Supervision and National Credit Union Administration can write the regulation it enforces.”

It’s about time.