Barney Frank has a good basic idea, that of a federal regulator with the power to regulate all financial transactions with regard to systemic risk, and then he jumps the shark completely by suggesting that this regulatory authority be placed in the Federal Reserve.

Seriously. Much of the Federal Reserve has not only gone native, but are to some degree actually owned by the commercial banks.

Any organization that was headed by Alan “Bubbles” Greenspan 20 years should be kept as far away from managing systemic risk as possible.

It’s like giving an infant a loaded revolver.