Getting financial stability

The 95 year old Federal Reserve system failed to halt the most recent financial crisis.

Most of the following proposal has been delivered to the national leaders who have responsibility to fix the system.  I hope they understand it:

The regulatory world needs to solve multiple financial problems at the same time with a) a single  financial auditor's office (b) of the highest quality and c) make use of a competitive whistle blower reward system.

Most SEC, FDIC and other financial regulatory agencies turn over their auditing and investigative work to teams from joint agencies, most often under the Department of Justice which has the greatest enforcement and prosecutorial power. In lieu of the current system:

1) We may need a single financial auditing agency that works with all agencies. This new agency should specifically have authority to deal with any financial instrument.  The definition of a financial instrument is: any two party contract that is sold to a third party.  That includes mortgages, equity, insurance, CDOs etc...all monetary contractual instruments sold to a third party.

2) Such an auditing and investigative agency needs to have high quality staff.  This can be achieved with a military-like rule: two failures at promotion and the staffer is dismissed.  There can be extra bonuses for complex case work and unusually high productivity.

3) Finding widespread systemic errors, deception and poor decision making is impossible without a diversified self stimulated reporting mechanism. 

Some current regulatory agencies (USDA, HUD etc) rely on reports from business competitors to initiate legal action against an offender with penalties paid to the competitor that called attention to the offender. That would be a useful approach for this proposed unified auditing/investigative agency.  The rewards for whistle-blowing should be significant and proportional to the misadventures uncovered.  Cooperation of insiders is necessary for any audit and investigative process.