Where Barney Frank, chairman of the US House of Representatives financial services committee, uses a scalpel, Chris Dodd, his counterpart in the Senate, wields a machete. Mr Dodd’s draft financial regulation bill cuts through the regulatory thicket, reserving some particularly savage slashes for the Federal Reserve. It improves on the House version; however, it does not avoid pitfalls of its own.

Mr Dodd’s staff have done solid work, including much that the crisis has revealed to be necessary. Pushing derivatives into central clearing and on to exchanges; giving shareholders a say on pay; stricter rules for securitisation and credit rating; “funeral plans”; and resolution authority over large financial groups are all welcome.