What can I say? If only there had been regulations against this kind of thing, to prevent a recurrence of an old problem, instead of an unfettered market. Wait a minute, there were regulations. All of these problems were in fact already illegal and were so the entire time. A classic example of how regulations were imposed in response to a problem and presumed to prevent recurrence just be existing. I expect a deluge of suggestions that such problems be avoided by creating even more regulation without, once again, any concerns about whether the regulations actually address the problem, or whether they’ll be enforced. Regulators talk about preventing the recurrence of market failure, but never about how to prevent the recurrence of government failure. It seems very clear to me that this is an example of the latter and should be addressed by investigating the cause of that government failure and working on solving that problem.
I would also note that I think it far better to have no regulation, than to have even good regulation that is not enforced. The latter punishes the obedient, and disarms the trusting, while doing nothing to stop the criminals. Better to know, up front, that there is no protection.
P.S. I can’t resist noting that the Obama Administration was aware of the problem and decided to punt it down the road. So much for the Democratic Party taking regulation more seriously than the GOP.