What if MF is not a fluke? What if other banks/brokerages are ALSO using customer money?

[dixiegrrrrl]

If MF can be given the status of Primary Dealer, and the Fed and other regulators claim they did not know that MF was using client money to gamble with ( which MF has just admitted to)..
then how do we know that OUR money in banks and funds actually is there????

We know all the banks are screamingly over leveraged.
We know that Greece is going down, leaving billions of positions caught short.
We know the regulators have not been regulating a damn thing for years now.

How many MF's are there, ticking away???

[Yupster]

1. The worst part is since they all hold each other's bonds

then each one that goes down drags others closer to bankrupcy too.

If BAC goes down it will take the whole country down with it as every pension fund, insurance company and bank holds huge amounts of BAC bonds.

[Arctic Dave]

2. Great question.

Maybe that is why they balked on the fee issue. If they lose so many customers it may trigger an alert that they don't have the money as they are supposed to.

[MannyGoldstein]

3. They are absolutely gambling with our money, because Glass-Steagall is gone

For example, Bank of America recently moved some bad derivatives, that can potentially represent tens of trillions in liabilities, from its 15 investment banking arm to its 99% deposit banking arm so that the $1 trillion of 99% money in the deposit arm can be used as collateral if the derivatives implode. 99% depositors and taxpayers will be left holding the bag, the 1% in the investment banking arm will be unscathed.

This is why we need Glass-Steagall, nothing less.

[sabrina 1]

5. I was just going to mention that. That BOA was allowed to move

those derivatives which makes you wonder, are they expecting a crash? That should not have been allowed.

We need more than Glass Steagal, we need someone to start arresting people as well as restoring regulations.

[Horse with no Name]

12. Yet...the last vestiges of Glass Steagal were moved off the books

presumably just in case someone got the wild idea of trying to resurrect it...

[dixiegrrrrl]

4. there is no way MF is the only one.

Remember when Lehman went down?
Everyone jumped in to "contain" it and make sure no one asked that all important question,
but
TARP soon followed.

Now, it is well known the debts cannot be repaid and there is no TARP.

I think the banks are playing a very serious game of hot potato against a rapidly ticking clock.

with OUR retirement money.

[xchrom]

6. Where there is 1 - there is another.

I doubt they are original or unique.

[dixiegrrrrl]

8. Sounds like the cockroach theory....... ( uuugghh)

[JackRiddler]

7. What if? The question is not really necessary.

Of course other banks are. It's how they've won the game, prior to the inevitable crashes.

See my sig line? Next crash coming. Don't bail them out. Liquidate. Nationalize. Establish public banks by each state, support credit unions, encourage community currencies.

[Swede Atlanta]

9. It would not surprise me.........

I think engaging in derivatives should be illegal and punished by having to watch Herman Cain and Rick Perry debate before having the head of their dicks cut off and shoved in their mouths. Unfortunately because they will be so tiny, they will not suffocate.

[slipslidingaway]

10. knr nt

[dkf]

11. How can this not be caught by regulators?

[Horse with no Name]

13. You can't catch something you aren't looking for--willful ignorance

This is not the law of unintended consequences....it is the law of intended consequences.

[Kaleko]

14. All the too-big-to-fail banks worldwide are zombies.

Halloween is not just for one day in November anymore.

[Laluchacontinua]

15. I think it's highly likely.