Sure, the Bankers Are Crooks. Who Cares?

It ain't only the Ticker who's on to this crapola.

...Suggestions to restructure zombie banks like Bank America are ridiculed by former Treasury Secretary and Robert Rubin minion Tim Geithner and his ilk because of supposed “systemic risk,” but such arguments reek of corruption. The real reason nobody wanted bankruptcy for Bank America’s Countrywide unit was because of the securities fraud that would be revealed by a thorough examination of the mortgage backed securities originated by Countrywide and other lenders. Geithner’s successor at Treasury, Jack Lew, is another Rubin minion who was parked at Citigroup during the bad old days under Sandy Weill.
 

Just go down the list of the top six universal banks in the US; all have some degree of exposure to old mortgage backed bonds that, for example, had multiple pledges of collateral. That is, a home mortgage might have been pledged as security on two or more different bond deals. This is why neither Geithner nor his nominal boss, Barack Obama, would not dare prosecute any of the heads of the largest commercial banks for securities fraud; for fear of what they would find inside Pandora’s Wall Street drop box. ...

The banks have been handed "free money" by the Fed for the last several years, which has allowed them to survive.  But what happens when T-Bond yields begin to rise?

Stay tuned.  That'll happen sooner than you think!