Eight years ago, Florida Comptroller Bob Milligan set out to change the relationship politicians had with financial institutions, and now that his job is done, he's retiring.

Florida Comptroller Bob Milligan will retire in January as the only elected banking commissioner in the nation if not the world. In departing, he will mark the fulfillment of a campaign promise that was so wholesome as to seem unattainable: to separate the regulation of the financial industry from the politicians who seek its campaign contributions. The promise helped him defeat an industry-backed incumbent who had 10 times as much to spend.

Looking back, Milligan concedes he was naive to expect that it could be accomplished quickly. It took nearly eight years, but the job will be done when the governor signs the legislation that the House and Senate approved unanimously last week. The new Department of Financial Services will regulate the insurance industry as well.

The compromise has curious features that owe to Florida's unique elected Cabinet system. Rules for banking, securities, insurance and other financial services will be adopted by a four-member commission consisting of the governor, the new chief financial officer who will be elected in November, the attorney general and agriculture commissioner. (The other Cabinet offices of comptroller, treasurer/ insurance commissioner, and education commissioner will pass into history under a constitutional amendment Milligan helped to inspire four years ago). Actual regulation, which involves such critical functions as approving insurance premiums and disciplining licensees, will be delegated to two agency directors whose decisions are meant to be final.

Three of the four commission members must vote to appoint or remove these directors, and both the governor and chief financial officer (CFO) must be on the prevailing side or nothing happens.

That gives the governor and the new CFO a veto over each other, which was the key to obtaining Treasurer Tom Gallagher's consent for the compromise. Gallagher expects to be elected CFO -- he has no opposition, now that Milligan has withdrawn -- and was unhappy at the prospect of having so much less direct authority over insurance than he exerts at present. However, the compromise assures that his influence will be significant. Whether a strong-willed governor and a strong-willed CFO can successfully cohabit (as the French would say) remains to be seen. Milligan, for his part, is confident that open meetings will discourage gridlock and ensure their good behavior.

Milligan's threat to run for CFO if the Legislature did not resolve the issue contributed significantly to passing the compromise. No achievement that comprehends Milligan's retirement is altogether to the good. Milligan has been the most conscientious and least political comptroller in living memory, and the Cabinet will be poorer for his departure. His successors as CFO should expect the public to measure them by his example.

But this is, after all, his second career, and if he wants to retire, so be it. Milligan was a recently retired Marine lieutenant general when the Republicans recruited him to run eight years ago. He brings to mind the Roman statesman-soldier Cincinnatus, known to history as the man who held office only so long as he had to. Milligan did what he had to, and Florida will be better for that.

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