Big Banks Have Become Mafia-Style Criminal Enterprises

George Washington's picture

Two stories this week prove once again that the big banks are literally criminal enterprises.

Initially, all of the big banks have engaged in Mafia-style “bid-rigging” of municipal bonds, to bilk money from every city in the nation … to the collective tune of tens billions of dollars.

And Barclays and other large banks – including Citigroup, HSBC, J.P. Morgan Chase, Lloyds, UBS, Royal Bank of Scotland – manipulated the world’s primary interest rate (Libor) which virtually every adjustable-rate investment globally is pegged to.

And see this. That means they manipulated a good chunk of the world economy.

Other recent stories also show criminal fraud as well. For example, the big banks have been cheating homeownersespecially veterans.

And as Max Keiser explains, banking giants Mellon and State Street shaved money off of virtually every pension transaction they handled over the course of decades, stealing collectively billions of dollars from pensions worldwide:

(Details here, here, here, here, here, here, here, here, here, here, here.)

Indeed, the entire business model of the big banks is fraud. See this, this, this, this, this and this.

Fraud caused the 1930s Depression and the current financial crisis.

Regulators Have Become “Cops On the Take”

There’s no recovery because the government made it official policy not to prosecute fraud (and see this, this, this, and this).

Unfortunately, the cop is on the take … and the government’s only actions are to cover up the fraud and to leave the people holding the bag.

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geekgrrl's picture

"... the big banks are literally criminal enterprises."


Great post GW. Thanks.

world_debt_slave's picture

I saw this going on in the mid '90's as a medical biller. I noticed AARP (supplemental insurance to Medicare) would always short us a penny or two on all the medical services claims submited to them.

I called up an AARP representative one day and asked them why they were always short a penny on their payments to us. The AARP representative told me it's just a penny. But I told them that those pennies add up.

The financial fraud is rife in all the economy.

q99x2's picture

This kind of stuff must be opening some serious opportunities for political wannabees. Just takes time. That's why there are numerous rumors that the crimminal banksters are just going to start blowing things up and having the military attack US citizens to stop the uprising before it gets started. Whatever.

I flew the late flight from Pittsburgh to LA on Y2K. Had three seats to myself and slept well. Although when coming into LA with cloud cover in the morning and zero visibility out the window I was able to consider matters in a way not possible otherwise. I don't believe in anything except having a good time. And, it is possible to have a good time by being responsible.

Arrest them.

BidnessMan's picture

The safest place for your money is under your mattress, with Au and Ag safely submerged after that boating accident.

dizzyfingers's picture

monoloco: You are so right!!! (I don't mean politically...) 






duckarooni's picture

One might also add a rule banning present or former employees of Goldman Sachs from holding ANY position of high office.

The role of Goldman Sachs in the causation of the eurocrisis, amongst their other 'fiddling' activities which make the current Barclays scam look like very small potatoes indeed, will go down in infamy.

GS are even trying to get their guy in as the new governor of the BofE. Heaven help the UK if they succeed.

Joebloinvestor's picture

When the US starts a RICO action against these criminals I will get the popcorn.

monoloco's picture

They will only be prosecuted when we elect a government that's not made up of Republicans and Democrats, in other words, never.

Bob's picture

Hell, I'll get some CPR!  What passes for "the US" these days is the criminals. 

Just don't fuck with the job creators, mmkay?

Bansters-in-my- feces's picture

well,you know the old saying...."Crime pays"......

chunga's picture



FRANKLIN RAINES [D] – FNMA CEO (1999 – 2004) Raines accepted “early retirement” from his CEO position while the SEC pretended to investigate accounting irregularities. Fannie’s own OHFHEO also accused him of abetting widespread accounting errors, including the shifting of losses, so he and his fellow execs could “earn” large bonuses. The WSJ reported back in 2008 that Raines was one of several cronies that received below market rates for mortgages from Countrywide. Raines alone receive loans for over $3 million while CEO of FNMA. Raines’ compensation for his “work” at FNMA - $90 million.


 DANIEL MUDD [R] – FNMA CEO (2005 – 2008) Before becoming CEO of FNMA, Mudd worked at the Office of the Secretary of Defense, was an advisor to Asia-Pacific Economic Corp., “served” on the board of the Council of Foreign Relations, “consulted” at the World Bank, and held many positions at GE Capital including president and CEO. Mudd was dismissed as CEO of FNMA when FHFA became conservator in 2008. In 2011 Mudd and other GSE execs were charged by SEC with securities fraud. After his career at FNMA Mudd became CEO of a NYC hedge fund named “Fortress”. Fortress invested in purchasing tax liens on delinquent property taxes from local governments under many benign corporate names such as “Pleasant Valley Capital” and “Travis Farm Investments”. Cozy. Mudd’s compensation for his “work” at FNMA - $80 million.


NEEL KASHKARI [R] – FNMA CEO (Tenure is murky) Kashkari was a former investment banker for Goldman Sachs, was tapped by Hank “The Shank” Paulson to lend his skills over at TARP HQ, and now rather ironically, continues God’s work as a Managing Director at PIMCO. Kashkari’s compensation for his “work” at FNMA is also murky; I’ll just assume it was too much.


HERB ALLISON [D] – FNMA CEO (2008 – 2009) The esteemed Mr. Allison was quickly whisked off to oversee the wildly successful TARP program. I didn’t find much on his compensation during his brief stint as FNMA CEO. Allison served in various positions at Merrill Lynch and became a member of the board in 1997. He was a director of the NYSE from 2003 – 2005.


MICHAEL WILLIAMS [?] – FNMA CEO (2009 – Jan 1, 2012) Mr. Williams is a 20 year veteran at FNMA. While “serving” as FNMA CEO, Williams managed to scrape by on less than $6 million in 2011 alone. This could and should be considered a hardship, given the complexities involved in purloining ~ $60 billion of Fed bailout money.



Charles (my friends call me “Ed”) Haldeman has announced his retirement plans but intends to be a good sport and stay on with insolvent FHLMC until another crony can be found to fill his wing-tips.

That might take a while. “Serving” as CEO of the ultimate backstops for the lion’s share of the MBS Ponzi is very stressful.

We’ll have to accept former Freddie exec David Kellermann’s testimony posthumously. Mr. Kellermann was found hanging by the neck in the basement of his posh Vienna, VA home in the affluent suburb of Washington. D.C. way back in April of 2009. It is presumed he had no help and local police have stated there was no evidence of foul play.

It is one big revolving door. The sad part is...nobody cares or does anything about it.

I have done what I personally could and the lack of response is embarassing.

antisepticWipe's picture

What exactly did you "do" and why is it "embarassing"?

chunga's picture


I've been following a pair of judge's who are in the bag. I have a certified court transcript where the judge admits he never has and never will follow state statutes.

It pissed me off so much I wrote this Open Letter and sent it to the presiding justice, Senate Majority "Leader", and Senate President.

An Open Letter to the State of Rhode Island Superior Court June 9 2012 Regarding Foreclosure Fraud

Three weeks later and there are less that 200 signatures on this electronic petition.

The Honorable Presiding Justice Alice P. Gibney: Recuse Justice's Allen P. Rubine and Michael A. Silverstein.

I'm running out of ideas. The apathy is what bothers me most.

phat ho's picture

read this book back when I had a life. called Murder Inc. about how big corporations took over las vegas. now it appears the casino is the whole world economy. my how time does fly. worth checking out


Benjamin Glutton's picture

Milton Friedman and the Chicago Boys were here.


Thanks George.

Grand Supercycle's picture

More Equity Rally Expected.

Any traders predicting a multi month equity rally apart from me ?

As of today I am.

Last week was the turning point.

Significant equity upside expected this year according to my analysis.

However the SPX big picture remains very bearish and unfortunately this will not change.

Kali's picture

Lord Acton was right. The big battle will be people vs the banks.  I have said before, we need a type of Nuremburg Trial whose force extends across national boundaries to prosecute and punish these criminals.  It is not just the U.S.  As always, the big question is, WHO is going to do this and HOW?  How do we "fix" this?  The number of possible solutions is declining.

geekgrrl's picture

The wildcard is the US military.

I'll just leave that idea open-ended. I'm curious whether there are any opinions out there regarding the role of the US military vis-a-vis banker fraud.

illyia's picture

I think it might be you. Or me.

Wasn't it Margaret Mead who said...

A small group of thoughtful people could change the world. Indeed, it's the only thing that ever has.

Bob's picture

Hell, what would the motivation be?  To do what's right?  These people don't give a fuck about doing what's right--money makes right.  It was what sorted the worthy from the losers, last I knew. 

Now let's get back to persecuting and prosecuting poor people.  They're bad . . . and ugly, too. 


That Lord Acton dude also said "There is not a more perilous or immoral habit of mind than the sanctifying of success."  I'm still tryin' to figure that one out.

falak pema's picture

Somebody has to start taking criminal proceedings on this based on an arms length investigation accross the board of the financial sector. Cameron has chickened out. But the opposition in UK should persist. This is a cartel scam and I am sure the derivative rehypothecation we have talked about will also appear in the wash along with interest rate rigging to save their huge mountains of derivative bets. 

11b40's picture

Good luck to the UK, because it won't happen here.

The Supreme Court sealed our fate, insuring our leadership will remain 'bought', with the Citizens United decision.  Then, just to be sure, they sealed the deal last week with the Montana decision.

Yes, boys and girls, corporations ARE people just like you and me......and, money IS speech.

What I want to know is, if corporations are the same as people, then why aren't we putting corporations in jail?

Futhermore, if money is speech, and we have the right to free speech, then why don't we have the right to free money?

OneTinSoldier66's picture

Just in case you don't know the answers, I'll give you mine.


Corporations are made up of people, but they are not a real, actual, tangible person or people. A Corporation is simply a name on a piece of paper. So if a person inside a corporation commits fraud, he should be punished. But you can't send a 'corporation' to jail since it's just a name on a piece of paper. The Government, which is simply made up of politicians and bureaucrats, which are bought and paid for by certain Corporations, would like the electorate/constituents to believe that they 'punish' Corporations. By doing things such as fining them, after having bailed them out first with much more money than the amount of the fine.


I believe that money is free speech. However the Government has a monopoly on money, it's issuance, the interest rate on it, and the amount of debt owed, via 'legal tender laws'. The Gov't does not want us to be able to use free market money. They would lose power. Power would be returned to the people where it rightfully belongs. You cannot have free markets without free market money. If we had free market capitalism, they would lose power. If you are a business that has not paid the Government its' 'tithe', you might be fined without receiving any bailout, which might even put you out of business.


Do not look to the Gov't for help with the above items. It's their money, not ours. I recommend just living beneath your means and buy what Gold and Silver you can, and wait.

i-dog's picture


"why don't we have the right to free money?"

According to the socialists (and all politicians), you do.

Swipe yo' EBT!

11b40's picture

Don't forget the biggest recipients of free money....the banks.

But, also don't leave out all the other breaks (that we all collectively pay for) tossed to the other special interests with deep pockets, such as mortage interest deductions for the benefit of the Real Estate industry, the maze of tangled laws that regulate(?) the Insurance rackets, the Pharma & Medical industry, The Energy complex, and on , and on, and much free money for those who have plenty.  So much scorn for those who have none.

falak pema's picture

that in a nutshell is the tragedy of the Pax americana morph, that began IMO on november 23 1963... When you sacrifice the president to Oligarchy conspiracy God help the people!

One can say that the western world changed then, as the USA was supreme in cold war and export of their unique way of life dominated first world; as it does today in total corruption on all fronts of its past glory. 

tony bonn's picture

so true george....the banks are murderous thugs because the government is...and at the very bottom of the criminal totem pole are the people....

the people of america deserve what they get because they are too fucking lazy and irresponsible to know the truth. crime thrives in a cesspool of lies....a nation which will not prosecute the murderers of john f kennedy, starting with the murderer george bush sr himself, will suffer at the hands of thugs....

a nation which will not investigate the lies of barry soetoro and his still current indonesian citizenship is a nation richly deserving of the crime from which it suffers.


sgt_doom's picture

I don't know, I suspect the ethnic criminal organizations simply copied the power elites?

THE ENEMY WITHIN:  When Reality Trumps Fiction

Through many years we’ve thrilled to books and movies with suspenseful twists and turns, yet real life is often far scarier and more deadly.

Richard Condon once heard a rumor from a friend who knew someone with the agency, and Condon penned The Manchurian Candidate --- about a programmed assassin from another country, instead of massive brainwashing during a large scale programmed assassin project in America!

Similarly, John Hersey heard a chilling rumor and wrote the classic, The Child Buyer which featured a monstrous government sanctioned private sector experiment --- but insignificant compared to what actually took place in America!  (A great book, BTW.)

A few years back, in one of those rare occurrences when the movies are a thousand times better than the books, we were treated to the entertaining Jason Bourne trilogy, featuring a programmed assassin ostensibly aimed at the perceived enemies of America.

In real life, they aimed their programmed assassins and players at Americans; strictly for their psychotic greedy gain.

Fiction improved and struck closer to home with The Good Guy, an action novel by Dean Koontz, whereby the deranged and programmed killer appeared to originate from a privatized prison.

With yet another novel by Mr. Koontz, Relentless, this time he perfectly duplicated reality with an intelligence agency’s department functioning to mold public and cultural opinion and thought --- by any and every means necessary!

Relentless is reality!

When the CIA brought Nazi scientists to America at the end of World War II, they joined them with like-minded Americans to form the MK ULTRA program --- ultimately responsible for maiming  and murdering thousands of innocent North Americans --- and God only knows how many foreigners?

MK ULTRA:  an unimaginably vast program working through many universities, hospitals, asylums for the mentally ill, prisons, the US military --- even orphanages and school children became their involuntary and unwitting victims; sacrificing American and Canadian citizens in the name of “national security” --- but in truth, for the profit of the drug companies!

The financial disbursements were funneled through several foundations, but predominantly the Rockefeller Foundation.

The owner and chief beneficiary of those drug companies:  the Rockefeller family.

The major goals:  psychotic profit from insanely brutal human experimentation, group mind control and individual mind control, perfected with their fourth political assassination in the 1960s --- Bobby Kennedy!

While the complete number of their victims has yet to be determined, a brief list follows.

Victims: Stanley Glickman, Harold Blauer, James Stanley, Gail Kastner, Dorothy Proctor, Christine Bauman, Richard Carlson, Tony Vaitelis, Jean-Paul Martineau, Frank Olson, Frank Wisner, Sr., Ted Kacsynski (and his victims, in turn), the French people residing the village of Pont Saint Esprit in 1951, healthy American children in the 1950s, 1960s and 1970s, 1,000 "volunteer" soldiers, at least 23 women prisoners were also used as human guinea pigs, the <i>Ottawa Citizen</i> published an expose showing that hundreds of federal prisoners throughout Canada were used for pharmaceutical trials of untested drugs, sensory deprivation, and pain and electroshock studies, and unknown patients victimized by U.S. doctors injecting plutonium and uranium into unwitting hospital patients.

We hear or read of this isolated incident or that seemingly unique event, not realizing this suicide, or that overdose victim, or that insane bomber, or the schizophrenic in the tower with the rifle, were all related to the very same program, created in the CIA, long since moved to the DoD!

To understand who runs America, we must understand the financial-intelligence-complex:  how Wall Streeters created the US intelligence establishment during World War II --- for their own plunder, profit and power.

While one frequently reads historic references to “Wild Bill” Donovan of the OSS (a Wall Streeter), we never hear of his involvement in the cover-up of the execution of CBS correspondent, George Polk, by the corrupt rightwing government of Greece in the late 1940s.  (A left-leaning Greek journalist, Gregory Staktopoulos, was tortured into falsely confessing to his murder.  The one real investigator, Lt. Col. Kellis, was recalled during his investigation, evocative of a future action by Allen Dulles’ firing of the CIA investigator in the early stage of the Warren Commission, the one who was really seeking the murderers of President Kennedy.)

Related links:


falak pema's picture

Shock waves from Libor Barclays and RBS illquidity and other City shenanigans in government circles :

UK politicians: Banking system is corrupt - National Business -


Now the chickens are coming home to roost in City land. Will they lift the lid on THAT can of worms?

illyia's picture


(Not even if hell freezes over - or burns. Only if we all stop doing business with them will it stop.)

Yes We Can. But Lets Not.'s picture

The cunts at SunTrust want me to pay $7 for the honor of their cashing a check from my employer, drawn on its business account at  --  SunTrust.  When asked how they can justify that, they say that 'BofA does it too'.  So I tell em to eff off, and they tell me to have a nice day.

If you do business with one of these banks and thus support these freaks, you are a mindless jackass.

Seize Mars's picture

GW You rock. Hard

sgt_doom's picture

And thank the lord someone finally mentioned State Street and Mellon.

Recommended reading:

Battling Wall Street: The Kennedy presidency

by Donald Gibson


New_Meat's picture

GW: THIS is what you are meant to do.

- Ned

{and this is not even close to sarcasm; go get 'em tiger}

Chartist's picture

Ruger and Smith & Wesson have been doing a booming business.....