financial regulation might be a good idea

I look forward to seeing what is in the Geithner's proposed ideas for regulating financial firms. From the Post, we see that it would "define which financial firms are sufficiently large and important to be subjected to this increased regulation. Those firms would be required to hold relatively more capital in their reserves against losses than smaller firms, to demonstrate that they have access to adequate funding to support their operations, and to maintain constantly updated assessments of their exposure to financial risk."

Gosh, doesn't that seem like the kind of thing a responsible firm would do ANYWAY? The fact that somebody has to regulate simple prudence is an argument in favor of regulation.

As for regulating derivatives and being given the power to shut down non-bank financial firms, well I think the fine example of AIG, the bail-out that keeps on bailing, is probably a good indicator of why such abilities are probably a Good Idea.