Does the article explain who "said" that the SEC was lax? I've taken an irrational dislike to headlines written in the passive voice like this. "So-and-so accuses the SEC of being lax" would pack a lot more punch.

They quoted a number of Clinton era officials and the founder of Vangaurd Funds.

I don't see it as a crisis yet. I think that Sarbanes-Oxley was overdue for corporations, but I'm not certain that funds are in the same place. I think that the civil courts will be able to straighten this stuff out. Everything in the funds is about money, so money is what you have to put at risk when things get shady. A few eight and nine digit bad faith lawsuits will get any shady fund managers to clean up their acts faster than the threat of federal prison.This is one place that you can get libertarians on your side. Corporations are a construct of the state: you want limited liability, you give up some rights for it. You are still going to have a hard time selling something that isn't cooperative like the free market, but there is some wiggle room.

Corporations are a construct of the state: you want limited liability, you give up some rights for it.

That's the way it should work, anyway. Truthfully, I think all the state creations should exists to serve the humans that make up society.

Truthfully, I think all the state creations should exists to serve the humans that make up society.

The only problem is that all these state creations still come down to the citizens running them. You can't have a creation that is its own entity without it leading to tyranny. You can have a creation of convenience (like a corporation) that gives certain privileges in return for a stronger duty (like the fiscal duty a corporate officer has to shareholders.)When you get right down to it, government is people (and the more people it is spread out across the better.) It is no less fallible than the people that constitute it.

The only problem is that all these state creations still come down to the citizens running them. You can't have a creation that is its own entity without it leading to tyranny.

No argument here. That's the problem that's looks like it's leading to a corporate oligarchic state.