Comment: Setting the stage for bank fraud

The systemic fraud underlying the US financial system a function of ideology. Former Fed chair Alan Greenspan was/is opposed to regulating financial fraud, and this anarchical ideology is at the root of America's fiscal problems. A PBS documentary called "The Warinig" exposes Greenspan's lawless world view. I highly recommend watching it:

http://video.pbs.org/video/1302794657/

Glass Steagall was enacted in 1933 as a means to curb the bank speculation that led to the 1929 crash. It kept Wall Street in check for 70 years by separating commercial banking from high risk investment banking. Under Glass Steagall, only commercial banks had access to the Federal safety net (FDIC). Here's a short article on Glass Steagall:

http://westlawinsider.com/?s=gramm-leach-bliley&submit.x=8&s...

In addition to the repeal of Glass Steagall, a year later the Commodity Futures Modernization Act deregulated derivatives. Here's an excellent and easy to understand article on the subject:

http://blogs.law.harvard.edu/corpgov/2009/07/21/how-deregula...