Why would he? It's not like he did anything illegal, and if you tried to say what he was doing should be illegal, or at the very least regulated and in the open, then you would have been called a loser socialist who's jealous of financial innovation.
Let's not forget what the prevailing attitude was just a few years ago, and you can still see lots of it left over today.
Cassano was not committing fraud in the narrow context that our politicians had been bought off to ease regulations to allow him to do what he did. Additionally, our executive branch pulled the age-old political trick of "speak loudly but underfund". That is, there was noone providing oversight in the OTS. According to the article, there was only 1 OTS employee that had a background and position to oversee the entire industry.
Incidentally, a similar thing happened with Pentagon spending: for much of the Bush years, there was reportedly only 1 person to review ALL expense reports from all contractors. The result was everything was approved; zero oversight.
