The report by the Financial Services Authority (FSA) said the bank nearly folded in 2008 due to poor management decisions, inadequate regulation and a flawed supervisory system.
They kept the financial intelligence functions of the FIA intact, but left the details of its supervisory functions to be defined by subsequent regulation which has yet to be completed.
The large literature on macro prudential regulation stresses the importance of using information obtained in the supervisory process to check for emerging bubbles and other imbalances.
Dodd continues to champion an idea of creating a super regulator for bank safety and soundness, combining the supervisory roles of the two existing national bank and thrift regulators with the bank regulation duties of the Federal Deposit Insurance Corp. and the Federal Reserve.