Regulatory capture happens more often with greater regulation. More regulation = more funding required = more labor needed to perform; more money, more labor demand = more political power; money funnels into those managing agencies through third party avenues as a means of buying power and before you know it the regulation is just another barrier to entry that allow existing corporations (often the ones who craft the regulation) to consolidate their industry.

Then we get things like the Horizon Deep oil spill.