> While I don't think heavy regulation and onerous filing processes make the system completely fail-safe, it does provide some amount of deterrence to would-be

> While I don't think heavy regulation and onerous filing processes make the system completely fail-safe, it does provide some amount of deterrence to would-be crooks. How about some supporting evidence? After all, AIG was regulated by at least two federal authorities and some foreign ones. They got into trouble selling a product that US regulators asked them to sell. Fannie and Freddie were essentially govt run. We keep hearing about how banks and their management need to have more "skin in the game". How about making regulators and politicians do the same?