In another move indicating that Mr. Paulson has experience outside of Washington he appears to be poised to suggest a new set of regulators and consolidated roles among Washington beaurocrats. The moves are discussed here: Paulson to Propose New Regulators, SEC-CFTC Merger and here: Treasury’s Plan Would Give Fed Wide New Power

Acknowledging that part of the cause of the current crisis was a failure in oversight is an honest step in the right direction and suggests hope for the future. The fact that a conservative-minded former business executive with as much credibility as Mr. Paulson is doing this suggests that perhaps even those with a “leave things they way they are” form of conservatism might be willing to listen.

There is no question in my mind that our government needs to innovate if it wants to have a chance to keep pace with the breakneck speed of financial wizardry. By creating a leaner, more well organized, and more focused regulatory body perhaps we can accomplish such a lofty goal in the future and prevent future calamities like the one we have been watching unfold over the last year.

Now if only they would extend their reach to the rating agencies…one can only hope for so much I guess.