Lehman Brothers’ executives had the incentive and were creative. To receive big bonuses, they needed to reduce debts. It was not easy, since the fundamental was bad. The right thing to do — like eat healthy and exercise — was hard and, more importantly, would not keep them up with the Joneses. So they cooked up a scheme that turned debts into transactions: same business, different label. The firm appeared healthier. This practice, now infamously called Repo 105, continued until the hidden debts reached over 50 billion dollars. Stopping would feel like an addict deprived of drugs; no one has enough will power to do so voluntarily.
Those executives were smarter than law makers and judges. It is unlikely that any of them will go to jail. Given their business savvy, I doubt any government can touch their vacation homes on Mediterranean coast stocked with extensive wine collection. When smart people lost their morality, there is only one thing left to do.
Corporal punishment! Public caning comes to mind. Of course, the same smart people would have lawyers arguing those being cruel practices. Did I mention that they were rich too?
Guess there is nothing left to do.