Why not? One of the main failure modes of bureaucracy is escalating attempts to deflect blame for both individuals and the organization as a whole, where all that leads to a nightmare of red tape that pulls against the original intent of the organization. So you have a bunch of rules and strictness plus a bunch of snafus.

“Be indiscriminately more strict” obviously isn’t the thing to do. But I don’t think it’s too much to ask that a federal oversight organization be actually-effective at overseeing the industry it’s tasked with overseeing. Be strict enough in smart ways to catch real problems before they happen, might be one way to think of the ideal mandate.