There is ample evidence of corporate fraud in recent years, not the least of which is around the mortgage securitization processes.
We need a level playing field, with known, equitable rules, and with enforcement, and with judicial review.
Commit to regulation and a pro-governance model? Lose.
Commit to a corporate model and a pro-corporate model? Lose.
It's about balance.
You'll have to first account for two words: "regulatory capture".
Until you can find a miracle to get around that problem, regulation is in the long run destined to be turned inside-out and used to sustain the industries. Look no farther than the current debates about various IP problems for an example.