SEC Blame for US Financial Crisis

SEC Blame For Financial Crisis...?
Yes, while I have blamed the Federal Government for Bank and Loan Regulations since problems in the 1970s, I have to add SEC decision 2004 For Financial Crisis. According to David Cay Johnston, (the Book) "Free Lunch", the SEC reduced the amount of cash Investment Banks had to keep on hand in relation to Debt(or loans). This seems to indicate that either the SEC did not go to business school or did not believe in standard accounting practices (GAP:General Accounting Practices?).
Anyway there may be evidence that in 2006 evidence of financial problems was growing although the SEC did not monitor banks records on risk as required by this "New Regulation/Guidance". In fact the SEC did not even hire a Director for the organization that had the governmental responsibility. In all likelihood it was an underfunded effort by the SEC. But as I understand it (from previous scandals) the SEC was only funded for less than 200 full time workers in its normal budget for monitoring all American Public Corporations.