Bloomberg View: Too Much Bank Oversight Is Better Than None

Nearly four years after the financial crisis began, regulators on April 3 finally agreed to the criteria they will use to decide which parts of the shadow banking system to regulate. But they still haven’t imposed tougher standards on a single insurer, hedge fund, private equity shop, or money-market mutual fund. Failure to do so exposes the U.S. economy to unnecessary dangers.

American International Group is a prime example. The giant insurer required a $182 billion bailout in 2008. Its near-collapse helped propel the Dodd-Frank financial regulatory overhaul. Many lawmakers and policy makers agree that large, complex companies such as AIG had fallen through the regulatory cracks.