Is Obama’s attack on venture capital a necessary consumer protection or another opportunistic power grab?

Martin L asked: Please read the article before answering:
http://online.wsj.com/article/SB12392364…
Exerpt from the article quoting Tim Geithner, speaking on behalf of the administration, trying to justify the new draconian regulations:
“In justifying new SEC registration requirements, Mr. Geithner said that Bernie Madoff’s Ponzi scheme demonstrated that investors need more protection. He didn’t mention that Madoff’s firm was registered [...]