MF Global…Goldman Tax and JPM...

There is no practical way that the regulators could NOT have known about the endemic fraud at MF Global…what were the regulators doing sleeping with the enemy? The next question is what’s going on with JPM and Goldman Tax, BAC and Wells etc…all of whom own sovereign derived positions at much higher leverage than MF but do not mark the positions accurately because its part of being a bank to supposedly hold to maturity and commit accounting fraud! I guess this is why the banks on this list are able to fake their earnings with loan loss reserve write ups…

Are the regulators going to wake up and be similarly surprised when these institutions implode? JPM is a disaster and Goldman is worse which is hard to believe…BAC is simply a criminal enterprise and Wells bought Wacovia…how they could be faring much better than BAC would be remarkable.

MF Global was a shot accross the bow…the banking system as well as many more investment firms will be next on the block…

Meanwhile, Bill Black does have quite a few reasonable things to say…I do not agree that government is the solution but I definately think that people should NEVER be paid to do nothing…its bad for their skill sets and its bad for morale and moreover its bad for the country. As for the CEO’s of all the above firms and quite a few more who believe they can pretend to be great financiers and market participants…they should likely all be in JAIL.