Clearly this happened because the financial sector is just bogged right down with regulations, and if we eliminated them all they will police themselves just fine! Sure there might be a massive global depression they cause initially, but eventually the great free market will correct itself and all will be well happily ever after!
Ironically, you destroyed your own position right in your own post. While attempting to be sarcastic, you accidentally pointed out that despite the millions on millions of regulations we have... fraud can still happen. Apparently your endless piles of non-stop controls and regulations, still failed to stop even the most simple of fraudulent activities..... making a fake account.
I think you would be hard pressed to show even one single example of a highly regulated industry, that you have succeeded in regulating all the problems away.