The Octopus that is Big Fed just grew some new arms, check it out:
A sweeping proposed overhaul of U.S. financial regulation is to be unveiled by Treasury Secretary Henry Paulson on Monday, according to reports.
The plan would give new powers to the Federal Reserve to be the primary regulator of market stability, with authority over all parts of the financial services industry.
Paulson’s plan would give the Fed regulatory authority over all financial institutions that operate with government guarantees, such as deposit insurance for banks, and would cover the insurance industry. A new regulatory agency would oversee consumer protection issues while the Office of Thrift Supervision, which supervises thrift institutions, would be folded into the Office of the Comptroller of the Currency, which regulates banks.
The plan is also understood to include merging the Securities and Exchange Commission with the Commodity Futures Trading Commission, and to provide for tightened regulation of mortgage origination.