A story in today’s New York Times on the Securities and Exchange Commission (S.E.C.) is a stern reminder of how lax enforcement efforts by regulators helped pave the way for the disastrous impact that the questionable behavior of giant Wall Street financial interests had on the economy. As reported in the story, the Times “found nearly 350 instances where the agency has given big Wall Street institutions and other financial companies a pass” on the kinds of serious sanctions that were supposed to deter securities fraud.

Though not specifically addressed in this report, the story should also raise questions about just what caused this slack oversight. It is absolutely essential that both Congress and the Administration look into that issue. The potential revolving door relationships between individual regulators and the institutions they are supposed to oversee certainly should be part of such a review.