Financial deregulation that allowed Fastows, Skillings, Mozillos, Milkens, and so many others to trade or conceal bad assets for profit were the tip of an iceberg of a too big to fail failure of Federal oversight of Wall Street financial practices. It may be too late to restore regulation Q and Glass-Steagle, yet the Congress can increase taxes on corporate profits and apply the I.R.S. with an enhanced investigation and enforcement division to monitor volatile derivatives transactions and unravel ongoing deceptive practices and failures of banks to be servants of public interest.
Corporate investment banking and trading synthesis has had inadequate oversight for requirements that they keep adequate reserves for lending and stock acquisition. Instead, investment risk is passed on to the uninformed. Adequate transparency and taxation of corporate trading and investment profit taking with monitoring Cray Research super-trading
I.R.S. Hawk computers might be able to confirm real asset values as they present as representative value object unit items and evaluate simultaneously the rational concatenated values of asset levels to determine how they affect national economic security.
The Federal lack of regulation has let investment firms make vast loans without keeping reserves adequate to keep them afloat should a downturn in the market occur-then taxpayers are dumped responsibility for the debt because of the need to avoid a pervasive financial collapse through the leveraging infrastructure of a predatory corporatist financial environment.
From Goldman Sachs Henry Paulson became the lender of the TARP plan funds to Wall Street. The Chicago School of Economics has had too many theorists regarding financial deregulation of finance as a Utopia through which social security and minimum wage might be eliminated while all manufacturing businesses become prey for insider finance.
While the normally questionable live business trades are going on the I.R.S. should be monitoring transactions of packaged tranches to make certain that taxes are paid on profitable transactions without which little sense of reality is compelled to be noticed or experienced by traders.