The Bush administration’s vision for a new US regulatory system for finance foresees a world with fewer regulators each having a much broader reach.

In the “optimal scenario”– which would take years to achieve and probably involve a bruising political battle – the US would have three main regulators, which would have oversight across the financial system.
●The Federal Reserve would be a “market stability regulator”, with broad powers to fight threats to the stability of the overall financial system.
●A “prudential financial regulator” would oversee commercial banks that accept customer deposits.
●A “business conduct regulator” would have responsibility for consumer protection, taking over many Securities and Exchange Commission functions.