re: The Answer Is Easy
You realize that your premise requires the regulators to be immune to the vast corruption you seem to assign to everyone else.
Do you have any idea how much of the mess we're in is due to the government intrusions in the first place? Do you think the mortgage crisis would have gotten to the point it had if they didn't think the government was going to insulate them from failure? And they did, didn't they?
I agree that taxpayers shouldn't be cleaning up Wall Street's mess, but the fact that they are socializing failure even as I write this is due to a political concept you support, not me.