To the extent that anybody is creating credit [money], they ought to be subject to the same type of prudential supervision that now applies only to banks. —Rep. Barney Frank, Chairman of the House Financial Services Committee, as quoted by James Politi in "Frank calls for financial risk regulator"

Why, that would be like trying to regulate counterfeiters. Surely the government won't go that far.

Many investment bankers fear tighter regulation, concerned it could make them more bureaucratic and slower to make decisions, and that they could face constraints on the deployment of their capital.

Will Wall Street rise up and demand its freedom? You bet!

Tags: news and politics monetary policy Federal Reserve