Hear a radio segment from This American Life about the failed (and corrupt) financial regulatory system and how it contributed to the economic meltdown. It really shines a light on why the regulatory system needs an overhaul.
I have my doubts about whether Obama will be able to make any significant improvements to the current corrupt system. Just like with healthcare reform, I don't think that Obama will be able to get his agenda through the Congress...at least not without a fight...and not before his initiatives are watered down so much that they become pointless. These industries (financial and healthcare) have spent millions of dollars literally buying members of Congress....which is why I have a feeling that both initiatives may fail. Certainly healthcare reform... (any real reform) is dead, as I have mentioned before.