Two alarming reports, both from the Centre for Public Integrity, show how entrenched the banks are in the political system and how close they are to politicians. Is it any wonder the US Government won't crack down on them?

First comes its report showing that that the top 25 originators of subprime loans, the $1 trillion worth of assets that created the meltdown were owned and financed by investment banks now receiving bailout money. Investment banks owning and financing subprime lenders included Merrill Lynch, JPMorgan and Citigroup which all received taxpayer money.

Connected with this is the second report, published here, showing that the top 25 US originators of subprime mortgages spent millions bribing politicians to avoid tighter regulation of their industry. According to that report, they spent almost $370m in Washington over the past decade on lobbying and campaign donations. Top of the list was Countrywide which made $97 billionin subprime loans between 2005 and 2007. Countrywide was acquired by Bank of America which received $45 billion in troubled asset relief funds from the US government. Maybe that was just payback. After all, Countrywide according to this report, spent about $11 million in campaign donations and lobbying in Washington between 1999 and 2008.

You can see a more graphic layout of the way the donations in this FT report here. Read it and weep.

Given that the finance industry is one of the largest donors to election campaigns, you can see why the US Government has treated it with kid gloves.