This reminds me of the stories that Gary's economics shared with his time at Citigroup which corroborates some of the stories my dad had as an accountant in investment firms.

That is, a lot of dicey stuff happens and management tends to only care about the results and intentionally places the responsibility on the traders by operating a very loose leash. This is combined with a % based commission which encourages rule breaking, given how high the rewards can be. The loose leash means when something bad is discovered (and this was the sort of thing my dad would uncover as an accountant) supervisors had this plausible deniability they could fall back on. This meant they could reap the rewards of positive returns while mitigating the blowback on them in the worst case outcomes.

Gary specifically shared a story when he tried to quit in that he was threatened with an investigation to dredge up all the bad stuff he'd done in order to be one of the more successful traders, which ultimately ended up as a big nothing burger as he didn't break any rules to get his returns. What was telling, was the assumption that they _would_ find something to use a cudgel to keep him there, as if it was almost expected.