Too failed to be big? Today, Public Citizen will send a formal petition to the Federal Reserve Board of Governors and the Financial Stability Oversight Council to break up Bank of America. The petition asks them to “recognize that the Bank of America Corporation . . . poses a ‘grave threat’ to the stability of the United States financial system and to mitigate that threat, as provided by section 121 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.”

The EPA has been under assault from the GOP for the past year, and this has led to some uncomfortable rollbacks and compromises. The Administration’s cancellation of new ozone standards was particularly galling. But today, the EPA came through with new rules on mercury and air toxics that will deliver massive public health benefits, in addition to reducing greenhouse gas emissions.

Until now, only the State Attorney General could bring action under the Martin Act, a securities fraud law in New York State that is much more expansive than federal statutes. Typically the plaintiff must prove intent to commit fraud; under the Martin Act the plaintiff need only prove that fraud was committed. Now, as a result of a new ruling, any aggrieved private actor can use the Martin Act as part of their lawsuit. This empowers investors of all sizes to go after the banks on securities fraud.

As part of the omnibus spending bill, the federal government will delay enforcement of new regulations for increased energy efficiency in light bulbs. Republicans claim that this delay, achieved through blocking Energy Department funding for enforcement through Fiscal Year 2012, will “save” the incandescent light bulb, but in reality incandescent bulbs were never banned. And light bulb manufacturers put a lot of money and effort into meeting the standard, so they oppose the delay altogether.

The recess appointment fight nominally only concerns Richard Cordray, the nominee to run the Consumer Financial Protection Bureau. Republicans want to block his confirmation because they stop the agency from gaining regulatory powers over non-bank financial institutions if they remain without a director. But a number of other nominees are caught in the crossfire of this fight, in particular nominees to lead other key financial industry NLRB regulators.

The House released their version of a year-end bill to extend unemployment benefits, a payroll tax cut and a “doc fix” to avoid a 27% cut in Medicare reimbursement. A look at the various elements of the bill make clear that Republicans have little interest in passing anything through Congress.

If you needed to appeal to one authority on banking regulation, you could do worse than to consult Sheila Bair, the former chairwoman of the FDIC. And now she’s advocating scrapping the Volcker rule and starting over. She comes at this by looking at the spectacle of MF Global – a brokerage house that would not be covered under the Volcker rule – and asking whether they would be permitted to trade depositor funds on their own account if they were a bank. The answer is far less clear-cut than it should be – and that’s the problem with how the Volcker rule emerged from the sausage grinder of the regulatory apparatus.

Other than possibly being unconstitutional, one does wonder where Congress would get the time to consider such regulations between fund-raisers and, well, fund-raisers. Unless, of course, they were determined to make sure there are no regulations ever, creating a government that cannot possibly ever function.

The upshot of this is that regulatory policymaking has become centralized in the White House. Obama has appointed some decent regulators at the various agencies, but all of their work gets funneled through Cass Sunstein. The regulators are just trying to make do with too-small budgets to fulfill their responsibilities. They also have to constantly look over their shoulders to see how Cass Sunstein is kneecapping their recommendations. And the real-world effects of all this are huge.

Bank of America has been dealing with extreme liabilities since they made the terrible twin purchases of Countrywide and Merrill Lynch. Their liabilities stem from foreclosure fraud and a huge pile of non-performing mortgages, plus some exposure to Europe’s debt. Now regulators are directly warning them to improve their financial condition.