Considering the number of 'very smart' people who were blindsided by fraud which emerged due to the financial crisis it makes sense to increase regulation and regulatory power. This isn't a situation where someone makes steel and its easy to measaure that it conforms to specification. If Steel had a property where the maker could save 30% on its production but have a 1000% greater chance that steel will fail in 20 years (Steel doesn't fail much) that wasn't apparant to people buying steel at the time then for absolutely certainty there would be a strong regulatory system on the production of steel.
In this case the financial companies within reason are better off from regulation than without it. Consumers themselves have lost most of their confidence in the financial sectors of the economy. They already had a bad reputation before the recession and now they are making lawyers more popular again. If regulation helps to restore that confidence faster then the financial companies will recover faster and consumers will not have to be paralysed with uncertainty with which institutions to trust with their money.
Tease.
