As banks write down billions and billions, Jim Cramer joins HP in asking - "WHERE THE FLYING F*CK WAS THE SEC? SARBANES-OXLEY ANYONE? ANYONE?"

Seriously, where the f*ck was the SEC? Where the f*ck IS the SEC? Where are the congressional hearings? Where's the office raids? Where's the frog-marches? Where are the state Attorneys General? Where's the Justice Department? Where's law enforcement?

Enough is enough. It's time for the arrests to start. Laws have been broken, criminals are running free (and being handsomely compensated), and the US appears to be a banana republic, and no longer a nation of laws.

Here's the new Cramer video (someone get this up on youtube OK?) - thanks bubble girl.

Cramer on the Banks: 'Where's the SEC?!'

Why isn't the Securities and Exchange Commission getting more involved in the whole banking sector writedown situation? Especially since the numbers are likely to get worse, not better? That's what Jim Cramer, CNBC's resident stock guru, wants to know.

"It's all fiction!" he declared during a forceful exchange (see it in full in the accompanying video) on CNBC's "Squawk Box."

"How can we have these levels of fiction in financials after Sarbanes-Oxley? How do people get away with this? How do they live with themselves?"

"I'm fed up with it. The American people should be fed up with it. And the SEC should be fed up with it," Cramer said.

"This is what the SEC is supposed to protect us from," he added.

Sarbanes and Oxley must be wondering what's taking so long to raid the offices of MBIA (and all the other corrupt REIC)

Frog marches and seizures. We want frog marches and seizures!!!

But they better hurry. The paper shredders are probably working overtime today at places like MBIA, IndyMac, Countrywide, WaMu, Fannie Mae, Freddie Mac, Sallie Mae and oh so many more...

MBIA Bond Risk Soars on $8.1 Billion CDO Disclosure

"We are shocked management withheld this information for as long as it did,'' Ken Zerbe, an analyst with Morgan Stanley in New York, wrote in a report yesterday. ``MBIA simply did not disclose arguably the riskiest parts of its CDO portfolio to investors.''

And then all the REIC stocks collapsed... WM, CFC, IMB, WFC, KBH, HOV, TOL, FED, FNM, FRE and more

All of 'em. Goodbye. The world will be shocked by the companies that go bankrupt and fire all their employees during this Great Unwinding. CEOs and CFOs will go to jail. Shareholders and bondholders will be wiped out.

And HP'ers saw it all coming. All of it.

Renewed credit fears sent stocks sliding on Wall Street, after a major bank said it expects market conditions to worsen.

At an investor meeting in New York on Wednesday, Washington Mutual (nyse: WM - news - people ) executives said they expect the housing slump to continue well into 2008, leading to an increase in loan losses and a continued decline in mortgage lending. Shares of the bank plummeted 15.7% after the comments were reported, falling $3.80, to $20.43.

Gee, what a shock. Bank shares getting ravaged as traders fear there's still billions more in write-downs to come. Ya don't say?

Hint to traders and MSM: The writedowns are just getting started. When the smoke clears, they'll be in the hundreds of billions, more likely trillions. Banks will fail. Taxpayers and shareholders will get burned. And it was all so obvious (to some).

It's called a Ponzi Scheme. It's called The Greatest Crash in Recorded Human History. And someone had to be left holding the bag.

Gonna be fun to see some of the former leaders of Merrill Lynch, Citibank, Countrywide, WaMu and more frog-marched one day. It's called Sarbanes-Oxley, and damn, it's sure not a good idea to sign inflated or falsified financial statements anymore. I guess they didn't get the memo. Had to keep the shell game going to cash in those hundreds of millions of dollars I understand, but still...

Meanwhile, know your FDIC limits HP'ers. More bank failures are on the way...

Banks hit again as credit fears spread

Fears of a fresh wave of losses arising from the credit squeeze spread around the globe on Friday, depressing stock markets in Europe and Asia and savaging bank shares for the second day in a row.

Despite a surge in US employment growth last month, investors remained worried that banks and other financial institutions still faced heavy losses arising from the troubled US mortgage market and related securities.

Andrew Wilkinson, analyst at Interactive Brokers, said: “A daisy chain of market reports predicting continued writedowns and runaway credit losses” at the biggest banks and brokerage firms hit investor sentiment.

Liar's Loans (Alt-A), a housing crash and IndyMac: Trouble ahead...

This may be a big wonkish, but here's the dealio.

Mortgage backed security investors, who buy up the loans packaged as collateralized mortgage obligations (CMO's), had a bit of a come-to-jesus recently with the subprime meltdown. So now they've wizened up to the con, and they're telling the Alt-A (Liar's Loan) companies that they're not gonna buy their junk anymore, or at least not at par value.

Why? Let's me put this in HP terms. Would any of you buy up Casey Serin's Liar's Loan portfolio? Yeah, that's what I thought.

IndyMac is the big kahuna in this space, with nearly 80% of their entire portfolio made up of this junk. Nice business when the getting was good and investors were buying up any debt they could find.

But not anymore. Party over.

It's been fun to watch their CEO (and #1 stock holder) Michael Perry pump his stock to the dubious market, screaming that they're not to be confused with those yucky subprime lenders, and how all is well. You also have the CEO and a few insiders trying to confuse the market and stop the hemorrhaging (of their stock holdings) by buying some nibbles of their own stock. Man, sometimes it's just so obvious.

You have to wonder how long until the SEC investigation, or in this case criminal charges are filed. There's this little thing called Sarbanes Oxley, where intentionally manipulating your stock, or not coming clean about your financials or prospects presents a wee bit of a problem for crooked CEOs and CFOs.

IndyMax reports Q1 this week. Let's see if they come clean on what's happening in their business, or if they choose to head down the Enron / Ken Lay / WorldCom / Bernie Ebbers well-worn path.

Note - I own a few IndyMac puts, betting the stock will (eventually) fall. This one is the mother of insider manipulation and disinformation, not for the wary, but it's a fun ride...