There is a revolving door between Wall Street and high-level government positions; plus the millions Wall Street spends lobbying Washington. But when the Wall Streeters come to Washington they don't use their insider knowledge to regulate (I know, what a dirty word) and therefore make the financial system more sound. No. They use their experience to enable more loopholes and then look the other way. It's good to see the SEC cracking down on the latest Wall Street corruption (high-speed trading). Though one must wonder, what took so long? Flash trading, among many other schemes, is not all that new. Hopefully the SEC will overturn the Commodity Futures Modernization Act and Gramm-Leach-Bliley Act, and reinstate the Glass-Steagall Act, alongside other much needed reforms.
For Further Reading:
Free Traders Become Protectionists
Great American Bubble Machine
How the Wall Street Bankers Bought Congress
Long Demise of Glass-Steagall
Nation of Village Idiots
Summers, Geithner, and Wall Street Ownership of Government
The End of the Financial World As We Know It
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