[dmfdmf]

Virtually nobody went to jail because the govt was complicit in the whole scheme to a) boost the economy through debt creation and b) push loans for sub-prime borrowers (specifically targeting minorities) to get buy-in for the "American Dream" of home ownership for "disadvantaged" groups.

Moreover (and probably more important) is that the parties involved except the govt all had plausible deniability in that they could point to the other parties to deflect blame. I say "except the govt" because they were the ones who were pushing the banks to lower loan standards for minorities, backing the GSE's with explicit loan guarantees and encouraging home ownership as the essence of the American dream to minorities. The mechanics or mistakes of how it was done, with CDO's or inflated credit ratings or even fraud, were a consequence of the govt pressure applied. Also, this was not an explicit policy written into regs & etc. but an implicit policy imposed by threats or hints by agencies that had a lot of power over the banking, mortgage and credit markets they regulate.