Allow me to explain a concept I hope quickly.
If you let people learn from their mistakes and let people fail/suffer from their mistakes, they will:
1. Not repeat those mistakes
2. Be pulled out of the system they destroyed with their mistakes.
Case in point, banking.
If we had a capitalist economy, most banks and the idiotic bankers that populated them would not only be wiped out, most of those bankers would be on the unemployment line or flipping burgers at McDonald's. The banking system would have been "cleansed" and what banks remained would have in a darwinistic sense been the "best" and would have continued to better serve society.
Instead, we bailed them out which means the idiotic bankers are not flipping burgers, but still employed in the banking system.
This puts government regulators at a quandry. Do we hope those naughty bankers learned their lesson?
Probably not, and so NOW we get to codify behavior.
This is an impossible task because you cannot codify behavior of amoral people. But don't let that stop the Feds from trying.