The only thing I would correct in your "Financial Corruption Process Map" is the step after #3:

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  3.5  "big fish" start buying up politicians and lobbying firms to legalize more and more "bad behavior"


  4.    Megabank acts legally to do something "reprehensible" since they lobbied to legalize it.


  4.5   financial collapse. scandal...then the hand wringing begins by walking corpses in Washington.