Katie Pavlich's book on F&F (I read the book in just 2-3 sittings it was so compelling) talks very lucidly about how regular gun dealers in the Phoenix/Tucson areas were practically bludgeoned by ATF agents into deliberately selling these guns to known "straw men", who were nothing more than fronts for the cartels and other bad guys.
The legitimate business owners of gun shops knew that they were selling these guns to bad guys, and were actually told to do so by the ATF. Refusal to comply was tantamount to having their FFL/business licenses revoked and other forms of harassment, which the government can do all too well.
The absolute stupidity of the whole thing was, the sales were observed. But the perps were not arrested, held, or confronted at all. They were allowed to leave the scene of the crime and return to Mexico, whereupon those guns were used in all sorts of illegal ways.
Common sense tells you, once the guns leave American soil, control is lost. You can claim you're acting in concert with the Mexican authorities all you want, but effective control of those firearms is lost.
Massive coverup at the highest levels of DOJ. The supervisors in Phoenix and Tucson who mandated F&F were not only not disciplined or fired (especially when Brian Terry was murdered), but they were given accolades and allowed to continue the F&F debacle.