It's no secret that the major investment banks were packaging pure crap and marketing it as investment grade paper. Many of us knew it and avoided disaster. Many others who had relied upon the honesty and reputation of these banks for years got burned severely.
Since the cases are so convoluted and the law at the time non-existent when it came to structuring derivatives, the SEC can do little. This is one situation where I'm cheering for the trial lawyers. Time to go after GS, MS, JPM, CS, DB, and the rest of them. Don't forget S&P and Moody's, the co-conspirators/enablers.
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