It's Normal for Regulators to Get Captured - McArdle

• The regulated industry controls the information used by the regulator. 
• The regulated industry cares more about regulations than anyone else. 
• The only place where a longtime regulator can get a new job is in the regulated industry. 
• It’s hard to stay confrontational all the time.
• Lobbying. It’s hard to adopt the Conan the Barbarian approach when you know that the boss of the folks you’re talking to is hosting a big fundraising dinner for your ultimate bosses in Congress and the White House.
• Over time, the interests of regulators and the interests of incumbents tend to converge upon keeping things nice and tidy by making sure that experienced players dominate the field.

Link