Billionaire investor George Soros said on Thursday that the U.S. financial regulation bill does not address the problem of the banking system being "too connected to fail."

"We didn't grasp the real problems" in the financial regulation bill, Soros said at a Financial Times conference.

Soros said that he did not see what had been done to solve the problem of the system being too connected.

"One thing you have to recognize is that markets are inherently unstable and maintaining stability has to be the objective of financial authorities," Soros said. "I think things have really gotten out of control and they have not been brought under control by what we've done so far."

Soros also said that there should have been a consumer protection agency to prevent banks abusing their power in areas such as credit card lending.