Here is an example to help you demonstrate my point.

Lets say we have a self-regulating "games for kids" lobby. It is bunch of gaming companies getting together and setting rules for making "games for kids". Few large companies get disproportionally large influence on this regulation.

Now these large companies turn around and stick bunch of addictive gambling into these games under disguise of micro-transactions and get rich off it.

Can you sue them? Not if they control self-regulatory body, they write their own "rules". Unless government steps in and make such practice illegal, they can continue doing it.

Kind of the same thing happened with these derivative securities - they were new enough that there wasn't any regulation in place, aside of self-regulation that was deliberately defanged by involved parties.

You are really mistaken in assuming that corporations would ever act in responsible manner unless they absolutely have to. Less regulations always means less responsiblitiy and this is exactly why shady corporations (see Koch Brothers) love to bankroll "deregulation" astroturfing.

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