I have been reading about the 'unprecedented grab of power being proposed by the Treasury Secretary' wherein he would like to have the authority to control the behaviour of companies like AIG. And Republican House head, John Boehner is vehemently opposed to it.

I believe that the following framework should be used to establish the future of financial enterprise in the US.

Just like the Department of Homeland Security, we need to have all organizations like the SEC, the CFTC, Office of Thrift Supervision, and various states' oversight of insurance companies - all need to be collapsed into the Federal Reserve. This will eliminate the need for multiple bodies doing their own specialised bit of oversight, while the big picture is alarming.

Secondly, the banks that are currently partially nationalised should be fully nationalised (stop baying for my neck), the toxic assets placed into a RTC look-alike, each bank split into smaller banks until none of them are 'too big to fail', and then sold to the public.

Any future mergers between any financial institutions need to be overseen by the Federal Reserve in order to ensure that the merger does not create a bank that is 'too big to fail'.

All advertising by these financial companies need to be regulated - much as the SEC regulates advertising by mutual fund companies, or by broker-dealers. This will ensure that shady practices of the mortgage brokers of yester-year will remain there - in the yester-year.

Thoughts?