Even before the mess is anywhere near cleaned up on Wall Street, officials on Capitol Hill are rolling up their sleeves to begin fixing the system. Rep. Barney Frank, chairman of the House of Representatives Financial Services Committee, plans to hold hearings at the end of March on creating "a strongly empowered systemic risk regulator." In addition, Frank said the committee will explore legislation to prevent excessive leverage in the financial system, create a way for the government to unwind failed non-bank financial institutions and prohibit 100 percent securitization of loans.

Although I doubt very few industry participates and watchers can say that today’s financial system needs no adjustments, is it really the time to start implementing new rules and guidelines? While the dust is no where near settled, Frank and Co. want to get a head start on new legislative policies. With too many questions arising—should the Fed have the power to regulate systematic risk or should a new body be created?—maybe Frank is right to get a move on early.

Wall Street has never been a fan of too much regulation. As I’ve said before, the current economic mess could create a knee-jerk reaction of too much regulation. It remains to be seen if Frank and his committee can strike the right balance.
-- Oksana Poltavets, US Reporter, Dealing with Technology