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Instead it created a regulator that was packed with political appointees.
When share prices of high-flying technology and telecommunications companies collapsed in 2000 and 2001, the scandals led to passage of the Sarbanes-Oxley law, which for the first time created a regulator to pay attention to the auditors, whose work had been woefully inadequate.
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Could he create a regulator that might conform with the charter's principles and gain recognition?
Most Republicans object to a new freestanding regulator with broad authority, while most Democrats back proposals to create a regulator that can operate with substantial independence.
It is aiming to create a regulator that meets the criteria for independence and effectiveness set out in the royal charter.
I worked with Rep. Barney Frank (D-Mass). and with Sen. Richard C. Shelby (R-Ala). to pass bipartisan legislation creating a regulator with real teeth.
The head of Britain's biggest commercial broadcaster has called on ministers to create a regulator "with sharp teeth" to rein in Facebook, Google and other internet giants.
It will create a regulator to promote better management of schemes and an insurance pool to bail out those that fail anyway.But insurance cannot cover risks that have already materialised.
Or it could be a dangerous attempt to have its cake and eat it, creating a regulator without the power to prevent the worst abuses, but with just enough power to scare away the best innovations.
The alternative royal charter, presented by Miliband and Nick Clegg, would create a regulator with greater independence from the industry; it would have more powers to investigate complaints; and it would be able to instruct on the prominence of apologies in newspapers while, crucially, the charter would be enshrined in legislation.
The push to create a regulator with a mandate to protect consumers from predatory lending practices and other financial wrongdoing has been one of the main points of contention between the two parties as they debate legislative proposals to respond to the lessons of the financial crisis.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com