The problem with what happened on Wall Street is there was zero downside risk in the bonus calculations for traders. Warren Buffett has said he would have had the same upside bonus potential but would have required a contract that forced the trader into near or actual bankruptcy if they ruined the firm. He said that an enforceable contract such as that alone would have solved the entire problem without the need for any additional legislation because they are on the hook with you, the shareholders, and the tax payers. Rational self interest would kick-in not only on the trader's own positions, but he would be watching the positions of his coworkers, too.
I wish I understood the ins and outs of wall street. It does fascinate me. I do, however, understand capitalism. It is so easy, an idiot could. I guess they are less than idiots who promote socialism..........