“Creating a systemic risk regulator would be a continuation of that regulatory confusion. Just as bad, a systemic risk regulator would work against Washington’s credibility in ending too-big-to-fail.  Investors would be lulled into false confidence that the government is looking out for them just as it looks out for insured bank depositors. But a systemic regulator would be no more effective than the former USSR’s central planners were in seeing and knowing all.  Just as markets seeking profits are better planners than central bureaucrats, markets protecting themselves from a credible threat of failure would be more effective regulators than a central office that stifles that threat.”

From After the Fall:  Saving Capitalism from Wall Street- and Washington by Nicloe Gelinas