MF Global is another glaring example of our hypocrisy and cronyism and lack of will to restore rule of law to our financial system. The perception is that the needle has moved further in the wrong direction.
Coming this fall, as President Obama makes his final push for a second term, his Justice Department will finally give the public what it wants in the form of an arrest of a major Wall Street figure for his role in the financial crisis.
Even if all of the MF Global money is eventually clawed back and recovered, this remains an impermissible act. People have been denied access to their money, and businesses and reputations have been tarnished. So far, no one has been held accountable.
Investors who are victims of crime or financial fraud might have an easier time dong background search in trying to avoid Ponzi schemes before making investments than guessing which bank, Future Commission Merchant, or broker goes bankrupt.
Greg Smith's recent wail of resignation made it clear that Goldman Sachs has long lost touch with these simple truths. The thing is, though, you don't have to be a client of Goldman's to lose out, you just have to be, well, a human.
Since the September 2008 financial crisis, we've seen a pattern of misdeeds, dodgy financial reporting, congressional "investigations" that are all for show, slow and incompetent investigations, and ultimately a slap on the wrist for wrong-doers.