In the same vein... Lewis and a dude named David Einhorn had a great op/ed in the NYT on this topic. Broadly, the current system of massive banking firms (with exorbitant salaries and bonuses) and lax SEC enforcement is inadequate to effectively police the finance industry. A great read.
David Einhorn runs a fund called Greenlight Capital. His fund was short Lehman for months leading up to Lehman's bankruptcy and they made a killing when LEH went to $0. His fund was also short Volkswagen back in October when news surrounding Volkswagen/Porsche came out. Greenlight (temporarily) lost a ton of money by being short VOW. He (and his fund) have been in the news quite a bit over the past 6 months. He's also an avid poker player, and if anyone here watches the WSOP, the name should be somewhat familiar.
Also, my opinion on the Portfolio article written by Michael Lewis is that he's somewhat frustrated that he tried to be the whistleblower on the banker lifestyle 20 years ago and nothing happened. Now that reform is most likely on the horizon, he needs to put in his two cents.