The Fed Chairman is taking over the SEC. The SEC and CFTC are becoming one. Sarbanes-Oxley II is on the way …

What happened to all of the regulatory reform activity that was streaming down the pike late last year?

Financial reform is “losing steam,” notes Princeton economics professor Alan Binder, who identifies five reasons why the “pulse of reform is so faint” in this column.

Here’s what gumming up reform, according to Binder:

Short Memories: Public attention has shifted to other issues and controversies.

Too Many Priorities: Binder points out that the U.S. Treasury has sent Congress 16 pieces of financial reform legislation — at a time when Congress is grappling with historic health care reform, two wars, and a budget to pass.

Effective Lobbyists: Binder notes that lobbyists whose clients oppose regulatory reform “will go to the mat” to fight regulatory reform.

Turf Battles: The Fed, Treasury, SEC, and CFTC all want to hold on to their authority.

Attention Spans: Part of the reason the public forgets about the events that sparked the worst financial crisis in 75 years is that these events consist of extremely complex and arcane processes that resist distillation into bumper-sticker rallying cries.

Despite these impediments, Binder expects at least some facets of financial reform to take hold. He identifies two in particular: greater consumer protection and restrictions on executive pay. He also asserts that there are more important other current reform proposals, including the notion of a systemic risk regulator. ###