No, I expect you to fail at producing the relevent sections of the U.S. Code (2007 edition) that regulated Argent Mortgage and the rest of the Shadow Banking industry.
You FAIL at doing so, because no such section of the code existed.
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Shadow Banking System
What Does Shadow Banking System Mean?
The financial intermediaries involved in facilitating the creation of credit across the global financial system, but whose members are not subject to regulatory oversight. The shadow banking system also refers to unregulated activities by regulated institutions.Investopedia explains Shadow Banking System
Examples of intermediaries not subject to regulation include hedge funds, unlisted derivatives and other unlisted instruments. Examples of unregulated activities by regulated institutions include credit default swaps.
The shadow banking system has escaped regulation primarily because it did not accept traditional bank deposits. As a result, many of the institutions and instruments were able to employ higher market, credit and liquidity risks, and did not have capital requirements commensurate with those risks. Subsequent to the subprime meltdown in 2008, the activities of the shadow banking system came under increasing scrutiny and regulations
http://www.investopedia.com/terms/s/shadow-banking-system.asp
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Tell us Wiley -- what does "unregulated" mean in the ACME NewSpeak dictionary, Driftdiver 2011 edition?