Uh, wasn't Enron an example of regulatory failure? They gamed the regulatory system, bribed the regulators who were supposed to keep them in check, and convinced everyone that everything was OK, because everyone got too dependent on believing regulators. If it wasn't for regulations surrounding Enron, we may not have trusted them as much, would have demanded audits by companies whose reputation was on the line (how badly did US regulator reputation get damaged after that debacle?), and chances are what happened at Enron may not have had the chance to happen in the first place.