Will regulating everything really control risk?

The Obama Administration wants to solve risk problems on Wall Street by regulating everything it can put its hands on. Its new programs include increasing the control that the Federal Reserve has over banks and other financial firms. A new consumer protection agency would be formed. Credit derivatives will be scrutinized.

Most of the details of the new plans have been leaked over the past several days. According toThe Wall Street Journal, "One new detail is that any large, interconnected company that the government wants to take over and break up could be pushed into government seizure by the Treasury Department."