How will you end collusion when the banksters are entrenched not only in the regulatory bodies but Congress itself. Have you considered that the more centralized power there is the higher the incentive for these groups to try to hijack it?
Assuming this analysis is correct, it only shows that government can't work. The electorate and politicians are fickle and what you've described will always happen. If program X requires that much consistency to succeed then it won't work in a democracy, maybe it might in a monarchy or dictatorship.
You reduce the collusion by taking money out of politics. Plenty of countries have elections that don't involve trillion dollar advertising budgets!
It shows that the US government is fundamentally broken due to decades of political misinformation (anyone who still believes Reaganomics is obviously deluded), a terrible secondary education system, and a political system that runs on a combination of bribery and bombast.