In a much-discussed live televised forum last week, Jamie Dimon, CEO of JP Morgan Chase, asked Federal Reserve Chairman Ben S. Bernanke the 64-trillion-dollar question. While most commentators focused on the apt question, it was Mr. Bernanke’s answer that shocked me when I heard it - and ought to shock the nation much more than it has so far.

Question: “Now we’re told there are going to be even higher capital requirements, and we know there are 300 [financial regulatory] rules coming. Has anyone bothered to study the cumulative effect of these things? And do you have a fear - like I do - that when we look back and look at them all, that they will be the reason that it took so long for our banks, our credit, our businesses, and most importantly, our job creation, to start going again? Is this holding us back at this point?”

Answer: “Nobody has looked at it in all detail, but we certainly are trying as in each part to develop a system that is coherent and that is consistent with banks performing their vital social function in terms of extending credit”...