What is the reason for large US financial institutions to take on European risk?
Easy, because the interest rate and general rate-of-return in Europe is/has been much greater than in the US.
Did the US/SEC make a mistake? HA HA HA - the charter of banking institutions is well-defined. Crooks are crooks and they should be punished as such.
You can't just say "oh, I guess I killed someone as a drunk driver BUT law enforcement officials didn't stop me so it's all their fault." That is the media version of Wall Street law breakers. A shameful and irresponsible version. Or, simply a stupid version? We can't tell which one.
