The GFC is a direct result of illegal behavior. If you don't understand that, you don't understand the GFC. The major problem is that Wall Street investment banks were marking shitty debt as AAA when it was no such thing. Because it was marked as AAA, the bad debt was bought throughout the globe because pensions and funds globally wanted only AAA debt. They knew the debt was shitty even as they were marking them as AAA and they didn't care. Once the debt started blowing up, all of these companies that thought they had AAA debt ended up holding onto shitty debt and it put everything at risk.

It's pure unadulterated fraud. No one was punished.