Consider if you will, the “reform” that took place in Medicare rules a few years ago.

Under these new rules, the government gets to “look back” five years to an elderly person’s earnings and asset transfers when mom or dad goes into a nursing home. The government can take those assets in case of a financial catastrophe.

I think most of today’s problems on Wall Street could be solved by a very similar new rule. That rule would state simply that if you are a CEO or senior officer who “certifies” financial statements, the government gets to look back five years into your compensation if your company fails or gets into serious financial trouble.

The problem with AIG, Fannie Mae, Freddie Mac, Bear Stearns, Lehman Brothers and others is that our highly touted financial “reforms” under Sarbanes-Oxley accomplished absolutely nothing.