Yes but its likewise with any government agency or anything to do with the rights of the people. There are too many businesses trying to get away with stuff that is harmful to consumers. I really think that by more regulation and this is tricky because "regulation" can turn into political agendas very quickly, it will be much harder for people to get away with stuff. The problem is what types of regulation should be the main focus point and to be careful to make sure it doesn't turn political wise is much easier said than done. I just think that before anybody does anything we should always look out for the people at heart... This is just my view though. I would hate for banks to steal money from consumers and get away with it.. It is sad when others have to suffer because of greed.
Generally, regulation tends to make things equally more difficult for the consumer and business owners. However, this is only considering "regulation" as a blanketed statement to encompass all possible applications of the term. In reality, when there's an outcry for more regulation on banking institutions, it's really in the interest of less control over consumer money and a reduction in the steady consumption of that money simply from being a member of that bank.
It is clear, as evidenced by other institutions, such as investment firms and merchant-based credit entities, that there are better, less predatory ways to deal with money. When one considers credit as its provided through Sears and Macy's or banking as its provided by Paypal, one will notice a striking difference between the way financial business is done between an institution that generates profit from other means, and those that generate profit as a banking institution alone.
This lends to the possibility that it might be better for all banks that are solely banking institutions to be nonprofit or credit union, and to leave the banking concept to rest.
The Central Banks exapansionery policy of slashing interest rates and printing money left us in this position. You may ask why, but by cutting interest rates and increasing money circulation deceives the investor in to thinking people are saving now so I can borrow savings but this is not true because the borrowed money is just printed Capital which is inflation and when investments fail they are left with devalued capital which leads to a bust. I propose a free banking system with no central bank where interest rates are controlled by the Market. The money supply would tightly controlled also by the Market with the banks having there own bills, this leads to a more conservative banking sector as they would be losing there own money also complete deregulation would be put in place.
The idea of regulation assumes that the regulators will be honest, transparent, capable and hardworking. They will work to make the industries they regulate more honest, transparent and equitable. But reality doesn't reflect this.
The most regulated industries are the industries that get punished the least and benefit the most from special tax breaks and bail outs. (Banking, healthcare, auto, military contractors, airlines) The too big too fail banks (and brokerage firms) were the most dishonest in the industry. They grew faster than their honest competitors because they spent their money bribing regulators rather than by satisfying customers.
And this regulatory distortion continues today as more honest and transparent credit unions are harassed by regulators for failing to make loans they consider to be too risky. Remember credit unions are designed to only loan to members using other members money. And if the membership wants to only loan to people with high credit ratings, then should the government really be able to require the credit union to loan to people with low ratings in the name of "fairness"?
So let's look at reality. In reality the more regulation, the less competition and so the fewer choices for the consumer. Bernie Madoff ran a scam for 20+ years with red flag after red flag being ignored by regulators who really had no skin in the game. It was only the competition that pushed hard enough to bring the who mess to light and so finally put an end to the scam.