I mean, seriously. You don’t have to be a cynic to guess that when the feds hire a guy from Deustche Bank who oversaw the folks developing CDOs there—and Deutsche was one of the worst churners of those toxic assets—you’re not going to get very tough enforcement of the folks who churned out toxic assets. It’s sort of like hiring Tom Hagen to look into corruption in the olive oil industry.

For all I know Khuzami may be a fine gent, but he shouldn’t be in that position. And his history is probably worth mentioning in any story exploring the “challenges in chasing fraud.”

If there’s any real justice here, it’s that JPMorgan couldn’t unload the Squared CDO junk fast enough and got stuck with $880 million in losses itself. But it wasn’t for lack of trying:

The SEC also quoted an exhortation from an unnamed J.P. Morgan employee to a sales team, which was told to offload the rapidly deteriorating assets in Squared onto investors.

“We are sooo pregnant with this deal….Let’s schedule the cesarian, please!” the email, with its misspelling, said.

Fortunately by then everybody was wising up to the scam.

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Ryan Chittum is a former Wall Street Journal reporter, and deputy editor of The Audit, CJR's business section. If you see notable business journalism, give him a heads-up at rc2538@columbia.edu. Follow him on Twitter at @ryanchittum.