It's very easy to see why that's a problem. But it should be equally easy to see the long-term results when we attempt to use the strength of government to ensure market outcomes. It doesn't take long for the regulatory agency to wind up working for the goals of the very entities they're intended to police. This is called Regulatory Capture, see http://en.wikipedia.org/wiki/Regulatory_capture .

This isn't a problem of bad politicians or people not trying hard enough to solve the problems. It's fundamentally implied by the nature of the beast. We need to have experts in the role of regulators; but where do experts come from, except from experience as past workers in those industries? This is all basic public choice economic theory. No amount of voting for the right candidates, or carefully crafting the regulations is going to get around the problem.