The current regulatory system is broken. Period. Yet when you consider everything in the financial regulatory system that could have been overhauled, you see a lot left out of the current bill. Smaller financial institutions will feel the most pressure, and smaller institutions may just throw in the towel. The Securities and Exchange Commission hasn’t done a stellar job regulating its own industry. It couldn’t even locate Bernie Madoff’s $50 billion Ponzi scheme, despite 10 years of a persistent whistleblower bringing it to the agency’s attention.”]
Source: https://www.cuinfosecurity.com/blogs/regulatory-reform-prelude-to-next-crisis-p-619