Gad:

WASHINGTON – The Federal Reserve could become the supercop for "too big to fail" companies capable of causing another financial meltdown under a proposal being seriously considered by the White House.

The Obama administration told industry officials on Friday that it was leaning toward making such a recommendation, according to officials who attended a private one-hour meeting between President Barack Obama's economic advisers and representatives from about a dozen banks, hedge funds and other financial groups.

Treasury Secretary Timothy Geithner and other officials made it clear they were not inclined to divide the job among various regulators as has been suggested by industry and some federal regulators. Geithner told the group that one organization needs to be held responsible for monitoring systemwide risk.

Don't break up the banksters -- like, say, Teddy Roosevelt would have. No, no, add a layer of regulation especially for them, which -- since they're running are running the country now, as both Johnson and Krugman have observed -- the banksters will immediately capture and subvert. I'm shocked.

Well done, FKD! Well done, all.

NOTE 1 I don't know any better test of "running the country" then being given two trillion dollars with no accountability, no transparency, and not so much as a Congressional hearing. Do you?

NOTE 2 Krugman's nothing to say post is now, very uncharacteristically, four days old. I wonder if making the Fed a "supercop" is what Obama invited the Cassandras to dinner to discuss? "Boys, here's what I'm thinking..." The beauty part of that would be that they couldn't discuss it afterwards, so the White House controlled the media cycle.

NOTE 3 I know Obama's early money was from Wall Street, but even I didn't imagine how horrific a harbinger that would be.