I dig your solution as well as some kind of limitations on "crossing the aisle" once you've gone over. Like former regulators have to have n years out of the job before being legally allowed to work for financial institutions or other ways to add distance and disincentive lenient regulation.
I have issues with employment restrictions, more on the public to private transition. A public sector job in almost any fashion is not going to pay as much as a private sector finance job. n years is overly punitive for someone who is likely not paid very well to begin with. Let's say you reduce it down to jobs only above a certain level. You will absolutely see a shift in how people pursue promotions and probably introduce a disincentive to even enter the field at a senior level.
