After CDOs, some new financial Frankensteins?

This isn't entirely on our patch, but this from FT Alphaville on Exchange Traded Funds (ETFs) caught our eye:

In a telephone conversation with FT Alphaville, [theauthor Robert E. Litan] told us some ETFs were even beginning to evoke CDO-type features and characteristics:

"We’ve analysed it and compare it to the growth of CDOs. Much the same thing is happening — they started off as good products but have been transforming into Frankenstein type securities. The business is out of control."

Read the full, very wonkish, post, for full details. It continues, with a colourfully mixed metaphor:

"You’re not going to be able to take ETFs and put them back in a box, that’s not possible. . . . The cancer is out of the bag, and you can’t make a cheetah turn into a monkey."

But seriously, who is trying to rein in this stuff?