but, surely the problem was the LACK of correct legislation.
I worked for KPMG when the sh1t hit the fan late 80's/early 90's. The FED and SFA (our equivalent) hired KPMG for investigative work they did not have the manpower for. In many cases 'corrupt' was too gentle a term.
Th biggest problem was the lack of legislation to require 'transparency' in the financial markets. BoD's did not even know what their businesses exposure was, let alone FED, SFA, Shareholders or the public.