The deal that the president-elect struck with Kim Jong Pil, the leader of the United Liberal Democrats, was to promise him the prime minister's job and endow the office with more clout than its current largely ceremonial role.

ECONOMIST: Kim the peacemaker

Mr Frank said the Fed would almost certainly have some role in whatever is created, but it may be necessary to create the resolution authority first, and endow it on a group of agencies, and decide later who the systemic risk regulator will be.

ECONOMIST: Financial regulation: Top watchdog | The