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Are Big Banks Criminal Enterprises?

George Washington's picture




 

Here are some recent improprieties by the big banks:

  • Engaging in mafia-style big-rigging fraud against local governments. See this, this and this
  • Shaving 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 and here
  • Pledging the same mortgage multiple times to different buyers.  See this, this, this, this and this.  This would be like selling your car, and collecting money from 10 different buyers for the same car
  • Committing massive fraud in an $800 trillion dollar market which effects everything from mortgages, student loans, small business loans and city financing
  • Pushing investments which they knew were terrible, and then betting against the same investments to make money for themselves. See this, this, this, this and this
  • Engaging in unlawful “Wash Trades” to manipulate asset prices. See this, this and this
  • Participating in various Ponzi schemes. See this, this and this
  • Bribing and bullying ratings agencies to inflate ratings on their risky investments

The executives of the big banks invariably pretend that the hanky-panky was only committed by a couple of low-level rogue employees.  But studies show that most of the fraud is committed by management.

Indeed, one of the world’s top fraud experts – professor of law and economics, and former senior S&L regulator Bill Black – says that most financial fraud is “control fraud”, where the people who own the banks are the ones who implement systemic fraud.  See this, this and this.

But at least the big banks do good things for society, like loaning money to Main Street, right?

Actually:

  • The big banks have slashed lending since they were bailed out by taxpayers … while smaller banks have increased lending. See this, this and this
 

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Wed, 07/18/2012 - 16:55 | 2629844 steelrules
steelrules's picture

I've thought long and hard for a word that best describes Wall Street, the banks and their inherent behavior.

LOCUSTS 

Wed, 07/18/2012 - 17:05 | 2629877 clawsthatscratch
clawsthatscratch's picture

Symbiote

Wed, 07/18/2012 - 18:06 | 2629973 sgt_doom
sgt_doom's picture

Naaah...symbiosis is normally a positive transference, like stomach bacteria aiding in digestion --- but few of us can digest this crapola.

Wed, 07/18/2012 - 18:10 | 2629982 clawsthatscratch
clawsthatscratch's picture

LOL..i was thinking more of Marvel Comics Symbiotes

The ability to negate damage caused by terminal illnesses and permanent injuries while not actually healing it...etc...se Wikepedia ;)

Wed, 07/18/2012 - 16:55 | 2629843 hustler etiquette
hustler etiquette's picture

To George Washington.  Tally-ho! You're ruining the plausible deniability thing they had going on whilst engaging in criminal enterprises.  Good work sir. I'm not mad, even UPS is not hiring.

Wed, 07/18/2012 - 16:53 | 2629837 JuicedGamma
JuicedGamma's picture

Yes, 'nough said.

Wed, 07/18/2012 - 16:28 | 2629784 dannynewmexico
dannynewmexico's picture

of course not, after all we are their

'human resourse'

 

 

survivingsurvivalism.com

Wed, 07/18/2012 - 16:20 | 2629757 ATG
ATG's picture

Is the last Pope Catholic?

IDK, but we are buying BB DIA August puts here:

http://richcash8tradeblog.blogspot.com/2012/07/rich-cash-overnight-options.html

 

 

Wed, 07/18/2012 - 16:42 | 2629814 johnQpublic
johnQpublic's picture

i believe the expression is "does the pope shit in the woods"?

Wed, 07/18/2012 - 18:08 | 2629976 sgt_doom
sgt_doom's picture

Or, does the pope enjoy fondling a little boy's balls?

FYI:  Should any assassins with the Vatican Secret Service be reading this, my home address is the same as Jamie Dimon's.

Wed, 07/18/2012 - 16:04 | 2629702 clawsthatscratch
clawsthatscratch's picture

For those of you who like details read VINCENT R. LoCASCIO. Sadly for us, he is no longer amoung the living.

Wed, 07/18/2012 - 15:58 | 2629671 clawsthatscratch
clawsthatscratch's picture

In a nutshell: Duh! 

Wed, 07/18/2012 - 23:30 | 2630706 RECISION
RECISION's picture

I was going to say:

Well... Duh!!!

 

So make that a +1 for your comment.

Wed, 07/18/2012 - 15:49 | 2629634 marathonman
marathonman's picture

Are big banks criminal enterprises?  When our whole monetary system is based on a Ponzi system of constantly expanding exponential growth in debt to stay stable?  Forcing the Federal government to borrow money and pay interest instead of just issuing US dollar bills to pay for stuff government needs is an extortion racket.  Plain and simple, the government is the mafia and the banks are the bosses.  We are the marks.

Thu, 07/19/2012 - 01:43 | 2630864 engineertheeconomy
engineertheeconomy's picture

Their time will come, and it will hit them hard. Computers keep track of everything. We will eventually track them all down, their children and or grandchildren and see that justice is served. There is no escaping, there is no way they can get off the planet. They can hide their wealth for only so long. It is not wise to imprison others and steal from them when you are greatly out numbered and live inside the prison with your victims. All in good time.

Wed, 07/18/2012 - 15:38 | 2629588 tony bonn
tony bonn's picture

i am sometimes tempted to cry for joy when i read george's blog because it contains so much truth....the first point about money laundering for drugs is so under reported and so little known but the mainstay of bank survival......

keep reporting george - i so love what you do....

the banks are indeed criminal enterprises run by crimnal thugs and protected by a criminal government....

Thu, 07/19/2012 - 09:07 | 2631357 samsara
samsara's picture

You are exactly right.

For those who have followed this for a while take a quick look at this picture

The picture is priceless.   It symbolizes the entire thing. 

NYSE Chairman Richard Grasso Embracing A FARC Commander

The Ultimate New Business Cold Call

http://www.scoop.co.nz/stories/HL0202/S00069.htm

 

Lest you think that my comment about the New York Stock Exchange is too strong, let's look at one event that occurred before our "war on drugs" went into high gear through Plan Colombia, banging heads over narco dollar market share in Latin America.

In late June 1999, numerous news services, including Associated Press, reported that Richard Grasso, Chairman of the New York Stock Exchange flew to Colombia to meet with a spokesperson for Raul Reyes of the Revolutionary Armed Forces of Columbia (FARC), the supposed "narco terrorists" with whom we are now at war.

The purpose of the trip was "to bring a message of cooperation from U.S. financial services" and to discuss foreign investment and the future role of U.S. businesses in Colombia.

Some reading in between the lines said to me that Grasso's mission related to the continued circulation of cocaine capital through the US financial system. FARC, the Colombian rebels, were circulating their profits back into local development without the assistance of the American banking and investment system. Worse yet for the outlook for the US stock market's strength from $500 billion - $1 trillion in annual money laundering - FARC was calling for the decriminalization of cocaine.

Thu, 07/19/2012 - 11:31 | 2632156 Careless Whisper
Careless Whisper's picture

*cold call = demand to pay the vig

Wed, 07/18/2012 - 18:09 | 2629980 sgt_doom
sgt_doom's picture

True, and as bad as that is, it's really the lesser story --- follow the financing behind the drugs, and you find the bank/oil cartel.

Thu, 07/19/2012 - 06:37 | 2631011 Bringin It
Bringin It's picture

.

Wed, 07/18/2012 - 15:34 | 2629574 q99x2
q99x2's picture

Does a bear shit in the woods?

Wed, 07/18/2012 - 18:18 | 2630000 Vidar
Vidar's picture

Does a bear wear a funny hat?

Wed, 07/18/2012 - 19:43 | 2630132 knukles
knukles's picture

Do bears like coke and hookers?

Wed, 07/18/2012 - 15:23 | 2629537 ebear
ebear's picture

Are banks criminal enterprises?

Do Ursidae defecate in arboreal regions?

Wed, 07/18/2012 - 15:38 | 2629585 Carl Spackler
Carl Spackler's picture

Inherently, no.

The problem is that the locus of money is where all the criminals flock toward, just like the locus of power is where all the megalomaniacs head toward.

Consequently, you have Blankfein, Madoff, and Corzine (among others!) on Wall Street and Obama, Reid, and Pelosi in Washington.

Thu, 07/19/2012 - 06:26 | 2631009 Bringin It
Bringin It's picture

Obama, Reid, and Pelosi are not hungry for power megalomaniacs.  They do what they're told.  They're pimps whoring out the nation.

Wed, 07/18/2012 - 15:28 | 2629555 hooligan2009
hooligan2009's picture

i admit it..i googled ursidae, which wasnt very taurus'ish of me :)

Wed, 07/18/2012 - 15:14 | 2629496 hooligan2009
hooligan2009's picture

Oh and don't you think that anyone who does not contribute taxes is not actually a legal entity and as such cannot be licensed as a business?

Wed, 07/18/2012 - 15:11 | 2629489 Crab Cake
Crab Cake's picture

Heres a start, spray paint THIEVES on the side of every bank branch you live near.

Wed, 07/18/2012 - 16:38 | 2629802 calltoaccount
calltoaccount's picture

or deck them in "crime scene" tape.

Wed, 07/18/2012 - 15:15 | 2629488 NuYawkFrankie
NuYawkFrankie's picture

Re Are Big Banks Criminal Enterprises?

 

 

If they are not Criminal Enterprises, then I have absolutely no idea what they are.

Wed, 07/18/2012 - 16:42 | 2629815 0z
0z's picture

They are the Angels of Destruction set on desintegrating a despotic monetary system. I wrote a blog on the subject a few weeks ago:

http://vaevictis.me/2012/07/03/vae-victis/

Perhaps some people here are thirsty for an alternative point of view.

Wed, 07/18/2012 - 15:05 | 2629470 garcam123
garcam123's picture

So why isn't the SEC or the Justice department compelled, by ANY lawsuit filed against these banks, to investigate and prosecute them?

 

And, pending that not happening whay isn't Zero Hedge in the streets demanding same?

You folks seem to understand what is going on better than anyone!

Sometimes in reading your articles and posts I just have to shake my head because I don't understand the concepts or nomenclature used and I like to think that I'm not stupid.

Wed, 07/18/2012 - 16:08 | 2629719 Divine Wind
Divine Wind's picture

 

 

“In the beginning of a change, the Patriot is a scarce man, Brave, Hated, and Scorned. When his cause succeeds however,the timid join him, For then it costs nothing to be a Patriot.”

 

- Mark Twain

Wed, 07/18/2012 - 16:01 | 2629689 marathonman
marathonman's picture

Seriously anyone trying to change the monetary system is very likely going to get shot.  Kennedy?  Issued an executive order to issue US silver certificates - debt free money.  Six months later?  Assasinated.  Lincoln?  There were certainly many reasons to kill Lincoln, but he issued debt free money to pay for the Civil War.  Lincoln assasinated.  Reagan, was at least friendly to sound money advocates and supported a gold standard commission.  Reagan got the message when Hinkley shot him.

The banks are criminal enterprises supported by various government agencies that interlock to protect the racket.  It's very hard to pierce the armor when they control both parties, academia, government, and media.  The SEC and the Justice Department are only there to give a patina of credibility to the whole system.  Only low level grunts get prosecuted.  The real white collar criminals will never be outed or prosecuted because the chains of corruption are too long.  If they prosecuted the whole chain the system would be exposed as a total parasitic fraud and the muppets might riot and change the system.  Best to let the muppets think they have a choice and let them argue about issues that don't really matter.  As long as the Lords of Finance are in charge, it won't matter either way.

Thu, 07/19/2012 - 14:16 | 2632978 pods
pods's picture

Kennedy was not the hero you are looking for.

pods

Wed, 07/18/2012 - 21:28 | 2630412 57-71
57-71's picture

Need to set up a Banker Extermination Day and take out 200-300 of the biggest banks leadership in one fell swoop.

Then invite more bankers to take their place.

A couple of times of this and no one will work for the big ones.

Wed, 07/18/2012 - 21:14 | 2630377 Clever Name
Clever Name's picture

You get a BIG +1 for this

"Best to let the muppets think they have a choice and let them argue about issues that don't really matter."

Thu, 07/19/2012 - 12:59 | 2632632 Widowmaker
Widowmaker's picture

Leave the homosexual out of this.

Wed, 07/18/2012 - 18:13 | 2629988 sgt_doom
sgt_doom's picture

Actually, it was JFK's tax bill, and doing away with their oil depletion allowance on the final budget submitted to congress, and his urging of land reforms throughout South America which was busting their tiny little crooked balls.

Which was why David and Nelson Rockefeller picked up the phone and gave the order.

Thu, 07/19/2012 - 06:20 | 2631006 Bringin It
Bringin It's picture

You're missing the theme.  Don't threaten the money monopoly. 

On the list should be 'Old Hickory' Andrew Jackson who smashed down his bankster assasin with his walking stick.  Lucky for AJ, the pistols misfired.  Then there's Garfield.  What did he do wrong?  Hmmm.  Something the banksters took exception to I'm sure.

Wed, 07/18/2012 - 16:46 | 2629822 johnQpublic
johnQpublic's picture

you know that the hinkley family were good friends of the bush clan and in fact hinkleys brother ate dinner at the bush residence the night before reagan was shot

Thu, 07/19/2012 - 08:49 | 2631264 Debt-Is-Not-Money
Debt-Is-Not-Money's picture

They use their own kids as Manchurian Candidates to carry out their agenda!

This is what the enemy looks like.

Wed, 07/18/2012 - 17:02 | 2629865 fuu
fuu's picture

What was it Bush did before he was Veep? Oh yeah CIA and CFR.

Wed, 07/18/2012 - 15:51 | 2629642 Winston Churchill
Winston Churchill's picture

You mean Holder(white Clloar Crime defence lawyer)'s DoJ.

Funny.,you missed the sarc.

Wed, 07/18/2012 - 15:32 | 2629568 ebear
ebear's picture

>>And, pending that not happening whay isn't Zero Hedge in the streets demanding same?<<

Armchair... too... comfy.   Can't... move.

Wed, 07/18/2012 - 18:29 | 2630014 Disenchanted
Disenchanted's picture

 

 

Speak for yourself, I'm sitting on an overturned 5 gallon plastic bucket...banging the key board of a decade and a half old PC.

 

Fuck man I'm living the dream. /s

Thu, 07/19/2012 - 06:12 | 2631003 Bringin It
Bringin It's picture

Teak.  Everywhere.

If I break down and buy a galaxy, I could lie in a hammock and read ZH.  But what if the tablet irradiates my nuts?  What then?

Thu, 07/19/2012 - 08:48 | 2631254 TheFourthStooge-ing
TheFourthStooge-ing's picture

.

But what if the tablet irradiates my nuts?  What then?

Not to worry. It'll give you a glow worm to match them.

Wed, 07/18/2012 - 14:47 | 2629373 Cruel Aid
Cruel Aid's picture

I read an article once about BAC having been created for CIA laundering and funneling of weapons money, but in the conspiratorial realm nothing is true.

Oh and my tax payment checks have the BAC stamp on them. IRS clearing house.

Oh and if you have cash or money market funds in Merrill Lynch, you should be worried, you have already dodged bullets. My folks management team has left the bld. and newbies have taken over. They still think it is a top notch financial mgt co.

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