The faulty premise in liberal/socialist thinking is that with enough regulations a "system" can be created that is so perfect that it will fix the flaws in human nature and eliminate greed, corruption and crime. It has never happened and you would think it is obvious that it never will. Worst of all, it assumes that government will be free of corruption.
Capitalism, as envisioned by Adam Smith, is intended to use human nature as the primary controlling influence. Vendors want profits, buyers want bargains, competition rules. Unfortunately, the prospect of ultimate failure isn't sufficient to prevent unscrupulous operators from causing great harm.