George J. Stigler, 1971. "The Theory of Economic Regulation," Bell Journal of Economics, The RAND Corporation, vol. 2(1), pages 3-21, Spring

This is now a must read for those seeking to understand the current financial crises, and what to expect.

For those that just want the insight: "as a rule, regulation is acquired by the industry and is designed and operated primarily for its benefit".

I would say given the lack of attention to meaningful changes in the financial sector, the preferences of this industry have been revealed.

Given the news from today, it seems the demand for a distraction from productive legislating by elected leaders is still quite high.