Financial Regulatory "Restructuring" Will Put Federal Reserve in Catbird Seat

WSJ is reporting that the coming overhaul of the financial system will be broad based and include:

Hedge funds would be forced to register with the government and may face federal supervision if they are large and complex enough...

The Federal Reserve will be the point organization for much of the financial sector . WSJ writes:

At the center of the plan, which administration officials are referring to as a "white paper," is a move to remake powers of the Federal Reserve to oversee the biggest financial players, give the government the power to unwind and break up systemically important companies...The Fed will likely have the power to set capital and liquidity requirements for the U.S.'s largest financial companies and scour the books of a wide range of firms.

This is probably as good a signal as any that Ben Bernanke is on his way out at the Fed. As Obama's top economic advisor, Larry Summers likely had major input on the restructuring plans. With the plan giving so much power to the Fed, one has to ask, Is Summers giving this power to Bernanke or is he designing a command and control observation deck from which he will eventually shout orders?