Why more regulation isn’t the answer

In a the New York Times article:

In what industry analysts said was an example of the excessively cozy relations between high-flying subprime lenders and federal bank regulators, the Office of Thrift Supervision’s West Coast director allowed IndyMac’s parent company to backdate an $18 million contribution to preserve its status as a “well-capitalized” institution.

Yes, that’s right, the regulators were in bed with the people they were supposed to be regulating, figuratively speaking. But clearly, this is the work of rogue agents, right?

But, oh shit, SEC regulators are now being investigated for the way they failed to regulate Bernie Madoff.

It’s almost as if, oh I don’t know, government regulation is not the answer or something.