If this deadly dynamic isn't solved -- if the biggest banks aren't broken up, if the Department of Justice doesn't start prosecuting crime in the financial sector -- our country will in the not too distant future see a financial crisis far worse than in 2008.
The appointment comes as no surprise because the agency typically draws regulators from the ranks of the regulated. But it does illustrate a significant problem: by relying so heavily on people with industry connections, the SEC can tangle itself in conflicts of interest.
In the DOJ's world, this means anyone under 18 who reads a Hearst newspaper online could hypothetically face jail time. But Hearst's publications aren't the only ones with overly restrictive usage terms.