US Regulatory Agencies

The US Claims to be the best market regulated market. However, the past few months have busted that tall claim.

I wonder whatever happened to the SEC, even as people are busy blaming either the Fed or the Treasury for all ills in Wall Street.

Can anyone enlighten me on what actions had the SEC been taking regarding disclosures by Finance companies? How did it accept 10K filings from Lehman Bros or AIG without discolures? If, assuming, there was nothing to disclose, how come things unravelled so fast that SEC had no inkling of them? If the Management knew something but did not disclose at the earliest opportunity, is it not tantamount to Fraud according to the US laws? Or am I missing something here?

To me , the Financial companies seem to create a new paradigm in Financial management.

Balance Sheet is fast equalling to BLANK sheet!!! Making a mockery of the rules and regulations and regulators, and in the end, the hapless US taxpayers!!