Problem is our common law system incentivizes dishonesty. There is also the problem that everyone tends to start suing the financier if they can't get the results they want out of the business, and the cumulative end result is that financial institutions (through the resulting excess of caution) have become de facto arbiters of legitimate economic activity rather than dumb pipes.

For some people this is apparently okay and desirable. To me it's horrifying, and tends toward centralizing power far too much.