This is ugly:
"U.S. stocks erased gains as financial companies turned lower following a report that JPMorgan Chase & Co. faces a regulatory probe over its dealings in mortgage securities, wiping out an earlier rally.
JPMorgan Chase, the largest U.S. bank by market value, lost as much as 1.2 percent after the website ProPublica reported that the Securities and Exchange Commission is investigating whether it allowed a hedge fund to improperly select assets for a $1.1 billion deal backed by subprime mortgages."
Little by little the fraud is getting leaked out to the public. There are simply too many holes to plug at this point, and the public is finally learning that our financial system's accounting looks no different than Madoff's Ponzi scheme.
I'll be back with a full update later.