Not much point to regulation when the regulars would rather look at porn.
Doesn't help that government policies leading back to the carter administration artificially inflated real estate and other market prices and forced banks to put people into homes they couldn't afford (i.e people who didn't make enough to even afford the payments). Which helped lead to this nasty mess we've been dealing with the last two years.
Oh and it also doesn't help that government officials were manipulating the market and bilking us through their own corrupt legislation. Wonderful isn't it?
Everybody with authority is to blame, not just Wall Street.