Banking Bailout News Articles
Below are key excerpts of revealing news articles on the 2008 banking bailout from reliable news media sources. If any link fails to function, a paywall blocks full access, or the article is no longer available, try these digital tools.
BILL MOYERS: Why do some of the most powerful and privileged people in the country get a free lunch you pay for? You'll find some of the answers [in]: Free Lunch: How the Wealthiest Americans Enrich Themselves at Government Expense (and Stick You with the Bill). The theme of the book as I read it is that not that the rich are getting richer but that they've got the government rigging the rules to help them do it. DAVID CAY JOHNSTON: That's exactly right. And they're doing it in a way that I think is very crucial for people to understand. They're doing it by taking from those with less to give to those with more. We gave $100 million dollars to Warren Buffett's company last year, a gift from the taxpayers. We make gifts all over the place to rich people. Donald Trump benefits from a tax specifically levied by the State of New Jersey for the poor. Part of the casino winnings tax in New Jersey is dedicated to help the poor. But $89 million of it is being diverted to subsidize Donald Trump's casino's building retail space. George Steinbrenner, like almost every owner of a major sports franchise, gets enormous public subsidies. The major sports franchises [make] 100 percent of their profits from subsidies. In fact, if it weren't for these subsidies, the baseball, football, hockey, and basketball enterprises as a whole would be losing hundreds of millions of dollars a year. George Bush owes almost his entire fortune to a tax increase that was funneled into his pocket and into the use of eminent domain laws to essentially legally cheat other people out of their land for less than it was worth to enrich him and his fellow investors.
Note: Watch part of this amazingly revealing interview online at this link. Johnston is a prolific writer with the NY Times; to see a list of his many articles there, click here. For deeply revealing reports from reliable major media sources on financial corruption, click here.
By the time Lehman Brothers filed for the largest bankruptcy in American history on Sept. 15, 2008, the country had been navigating stormy global financial waters for more than a year. Throughout the mess, the Federal Reserve and the U.S. Treasury had been permitting the largest banks in the country to funnel as much cash as they wanted to their shareholders ― even as it became clear those same banks could not pay their debts. Ben Bernanke, Hank Paulson and Timothy Geithner ... didnt really rescue the banking system. They transformed it into an unaccountable criminal syndicate. Since the crash, the biggest Wall Street banks have been caught laundering drug money, violating U.S. sanctions against Iran and Cuba, bribing foreign government officials, making illegal campaign contributions to a state regulator and manipulating the market for U.S. government debt. Citibank, JPMorgan, Royal Bank of Scotland, Barclays and UBS even pleaded guilty to felonies for manipulating currency markets. Not a single human being has served a day in jail for any of it. As a percentage of each familys overall wealth, the poorer you were, the more you lost in the crash. The top 1 percent of U.S. households ultimately captured more than half of the economic gains over the course of the Obama years, while the bottom 99 percent never recovered their losses from the crash. The result has been a predictable and terrifying resurgence of authoritarian politics unseen since the Second World War.
Note: For more along these lines, see concise summaries of deeply revealing news articles on financial industry corruption and income inequality.
In May 2009 Congress created a special commission to examine the causes of the financial crisis. Some commission members sought to block consideration of any historical account that might support efforts to rein in runaway bankers. One ... wrote [that] it was important that what they said not undermine the ability of the new House G.O.P. to modify or repeal Dodd-Frank, the financial regulations introduced in 2010. Never mind what really happened; the party line, literally, required telling stories that would help Wall Street do it all over again. Which brings me to a new movie the enemies of financial regulation really, really dont want you to see. The Big Short is based on the Michael Lewis book of the same name, one of the few real best-sellers to emerge from the financial crisis. It does a terrific job of making Wall Street skulduggery entertaining. Many influential, seemingly authoritative players, from Alan Greenspan on down, insisted not only that there was no bubble but that no bubble was even possible. And the bubble whose existence they denied really was inflated largely via opaque financial schemes that in many cases amounted to outright fraud - and it is an outrage that basically nobody ended up being punished for those sins aside from innocent bystanders, namely the millions of workers who lost their jobs and the millions of families that lost their homes. While the movie gets the essentials of the financial crisis right, the true story of what happened is deeply inconvenient to some very rich and powerful people.
Note: For more along these lines, see concise summaries of deeply revealing news articles about corruption in government and in the financial industry.
While British and American bankers who brought the world's economy to its knees in 2008 have barely faced the consequences for their actions, in Iceland, it's a different story. The Nordic nation, which was one of the worst affected by the 2008 financial crisis, has sentenced 26 bankers to a combined 74 years in prison. In two separate rulings last week, the Supreme Court of Iceland and Reykjavik District Court sentenced six top managers of two national banks for crimes committed in the lead up to the banking sector's collapse, bringing the total number of people who have faced the music for their roles in the crash to 26. At the moment the maximum penalty for white collar crime in Iceland is six years. Iceland deregulated its financial sector in 2001, and manipulation of the markets by bankers led to a system-wide meltdown when the global economy tanked in 2008. Iceland's economy is now in comparatively [good] health since the country was forced to borrow heavily from the International Monetary Fund seven years ago. As Iceland's president Olafur Ragnar Grimsson said when asked how the country recovered so quickly: "We were wise enough not to follow the traditional prevailing orthodoxies of the Western financial world in the last 30 years. We introduced currency controls, we let the banks fail, we provided support for the poor, and we didnt introduce austerity measures like youre seeing in Europe." In the US and the UK, of course, we just bailed them out.
Note: According to the New York Times, the lines between Washington and Wall Street are blurred. Will US officials ever get serious about about financial industry corruption?
Giant Wall Street banks continue to threaten the well-being of millions of Americans. Back in 2000, before they almost ruined the economy and had to be bailed out, the five biggest banks on Wall Street held about 25 percent of the nation's banking assets. Now they hold more than 45 percent. In 2012, JPMorgan Chase, the largest bank on Wall Street, lost $6.2 billion betting on credit default swaps - and then publicly lied about the losses. It later came out that the bank paid illegal bribes to get the business in the first place. In May, the Justice Department announced a settlement of the biggest criminal price-fixing conspiracy in modern history, in which the biggest banks manipulated the $5.3 trillion-a-day currency market in a "brazen display of collusion," according to Attorney General Loretta Lynch. Wall Street's investment bankers, key traders, top executives, and hedge-fund and private-equity managers wield extraordinary power. They're major sources of campaign contributions to both parties. In addition, a lucrative revolving door connects the Street to Washington. Key members of Congress, especially those involved with enacting financial laws or overseeing financial regulators, have fat paychecks waiting for them on Wall Street when they retire. Which helps explain why no Wall Street executive has been indicted for the fraudulent behavior that led up to the 2008 crash. Or for the criminal price-fixing scheme settled in May. Or for other excesses since then.
Note: Does it at all seem strange that after the bailout in 2008, the percentage of US banking assets held by the big banks has almost doubled? Could this possibly have been planned? For more along these lines, see concise summaries of deeply revealing financial industry corruption news articles from reliable major media sources.
Todays conspiracy theory is tomorrows news headlines. The truth is not only out there, but its more outlandish than anything we could have made up. So, what are some of our biggest conspiracies? The Iraq War. America is attacked by terrorists and so, declares war on a country that had nothing whatsoever to do with the attacks, while ignoring an oil rich ally which had everything to do with them. The result is a disaster. And yet, we cant really bring ourselves to hold anyone accountable. Fifa [is] the conspiracy du jour. We always knew Fifa was shonky and bribey, but ... it now looks like every World Cup in the last three decades ... could have been fixed. For those who say "its only a stupid sport", well, recently weve heard accusations of arms deals for votes involving ... Saudi Arabia. The banking crisis [is a] nice financial counterpoint to Iraq. Virtually destroy the western financial system. Get bailed out by the taxpayers who youve been ripping off. Oh, and while were at it, the banks played a part in the Fifa scandal. Paedophiles. At first it was just a few rubbish light entertainers. Then we had people muttering about the political establishment and others counter-muttering dont be ridiculous, thats a conspiracy theory. But it wasnt. Now, its a slow-motion train crash and an endless series of glacial government inquiries.
Note: For more along these lines, see concise summaries of deeply revealing news articles on corruption in government and in the corporate world.
Six years ago ... Iceland made the shocking decision to let its banks go bust. Iceland also allowed bankers to be prosecuted as criminals in contrast to the US and Europe, where ... chief executives escaped punishment. While the UK government nationalised Lloyds and RBS with tax-payers money and the US government bought stakes in its key banks, Iceland ... said it would shore up domestic bank accounts. Everyone else was left to fight over the remaining cash. It also imposed capital controls restricting what ordinary people could do with their money. The plan worked. Iceland took a huge financial hit, just like every other country caught in the crisis. This year the International Monetary Fund declared that Iceland had achieved economic recovery 'without compromising its welfare model' of universal healthcare and education. Other measures of progress like the countrys unemployment rate, compare ... well with countries like the US. Rather than maintaining the value of the krona artificially, Iceland chose to accept inflation. This pushed prices higher at home but helped exports abroad in contrast to many countries in the EU, which are now fighting deflation. This year, Iceland will become the first European country that hit crisis in 2008 to beat its pre-crisis peak of economic output.
Note: Iceland's plan to retake control of its money supply from the banks was labelled "Radical" by mainstream economists. Now we learn that their plan rooted out financial industry corruption and successfully got their economy back on track.
Since the 2008 banking crisis led to multibillion-pound bailouts, some bankers have ended up behind bars. However, to many, the list seems short when compared with the $235bn of fines that Reuters calculates have been imposed on 20 major banks in the past seven years for market rigging, sanctions busting, money laundering and mis-selling mortgage bonds in the runup to the 2008 crisis. Robert Jenkins, a former Bank of England policymaker [says] one reason regulators backed away from proceedings against individuals is fear. This dates back to 2002, when accountancy firm Arthur Andersen was convicted of destroying documents related to its audits of Enron. The prosecution was overturned in 2005, too late to save what had been one of the worlds biggest accountants from collapse. There was, Jenkins said, fear by the US authorities of a banking version of Arthur Andersen at a time of financial fragility. But he lists other problems, [such as] lobbying by bankers and the naivete of regulators. Jenkins added the banks should ... face the threat of being broken up: When it comes to the systematic wrongdoing on their watch, either the senior executives knew, did not know or cannot be expected to know. If they knew they are complicit. If they did not know they are incompetent. And if the banks are so large and complex that they cannot be expected to know, then they are a walking argument for breaking up the banks.
Note: After the bailout in 2008, the percentage of US banking assets held by the big banks has almost doubled. Could this possibly have been planned? For more along these lines, see concise summaries of deeply revealing news articles about corruption in government and in the financial industry.
Iceland's government appointed a special prosecutor to investigate its bankers after the world's financial systems were rocked by the discovery of huge debts and widespread poor corporate governance. "This ... sends a strong message that will wake up discussion," special prosecutor Olafur Hauksson told Reuters. "It shows that these financial cases may be hard, but they can also produce results." The country's efforts contrast with the United States and particularly Europe, where though some banks have been fined, few executives have been tried and voters suffering post-crisis austerity conditions feel bankers got off lightly. Iceland struggled initially to appoint a special prosecutor. Hauksson ... was encouraged to put in for the job after the initial advertisement drew no applications. Icelandic lower courts have convicted the chief executives of all three of its largest banks for their responsibility in [the] crisis. They also convicted former chief executives of two other major banks, Glitnir and Landsbanki, for charges ranging from fraud and market manipulation. Many Icelanders have been frustrated that justice has been slow. The prosecutors' office has been hit by budget cuts since it was set up. But Hauksson believes the existing rulings mean there is less chance of similar scandals in the future. "There is some indication that the banks are more cautious," he said. Asked whether he would take the job again ... Hauksson replied, laughing: "Yes. And I'd probably be the only applicant again."
Note: For more along these lines, see concise summaries of deeply revealing financial industry corruption news articles from reliable major media sources.
The head of the International Monetary Fund, Christine Lagarde, told an audience in London that six years on from the deep financial crisis that engulfed the global economy, banks were resisting reform and still too focused on excessive risk taking to secure their bonuses at the expense of public trust. She said: "The behaviour of the financial sector has not changed fundamentally in a number of dimensions since the crisis. The industry still prizes short-term profit over long-term prudence, today's bonus over tomorrow's relationship. Some prominent firms have even been mired in scandals that violate the most basic ethical norms - Libor and foreign exchange rigging, money laundering, illegal foreclosure." Lagarde warned the too-big-to-fail problem among some of the world's largest financial institutions was still unresolved and remained a major source of systematic risk, with implicit subsidies of $70bn (42bn) in the US, and up to $300bn in the eurozone. Lagarde said international progress to reform the financial system was too slow. Lagarde told [the] conference that rising inequality was also a barrier to growth, and could undermine democracy and human rights. The issue has risen up the agenda in recent months with the publication of the French economist Thomas Piketty's book, Capital in the Twenty-First Century. "One of the leading economic stories of our time is rising income inequality, and the dark shadow it casts across the global economy," Lagarde said.
Note: For more on financial corruption, see the deeply revealing reports from reliable major media sources available here.
The US Federal Reserve knew about Libor rigging three years before the financial scandal exploded but did not take any firm action, documents have revealed. According to newly published transcripts of the central banks meetings in the run-up to and immediate aftermath of the collapse of Lehman Brothers, a senior Fed official first flagged the issue at a policy meeting in April 2008. William Dudley expressed fears that banks were being dishonest in the way they were calculating the London interbank offered rate a global benchmark interest rate used as the basis for trillions of pounds of loans and financial contracts. Three years after his remarks, it emerged that traders at more than a dozen banks, including Lloyds, Royal Bank of Scotland and Barclays, had routinely been trying to fix the official Libor rate in order to boost their own bonuses and profits. The transcript of the Feds April 2008 meeting raises questions about why the central bank did not move to properly tackle the scandal. There was no official regulator for Libor at the time, and officials at the US Federal Reserve tried to blame British authorities for allowing the benchmark interest rate to get out of control in the first place. The Fed declined to comment on the transcripts or why it had not taken firm action..
Note: For more on government collusion with the biggest banks, see the deeply revealing reports from reliable major media sources available here.
Iceland let its banks fail in 2008 because they proved too big to save. Now, the island is finding crisis-management decisions made half a decade ago have put it on a trajectory thats turned 2 percent unemployment into a realistic goal. While the euro area grapples with record joblessness, led by more than 25 percent in Greece and Spain, only about 4 percent of Icelands labor force is without work. Prime Minister Sigmundur D. Gunnlaugsson says even thats too high. The islands sudden economic meltdown in October 2008 made international headlines as a debt-fueled banking boom ended in a matter of weeks when funding markets froze. Policy makers overseeing the $14 billion economy refused to back the banks, which subsequently defaulted on $85 billion. The governments decision to protect state finances left it with the means to continue social support programs that shielded Icelanders from penury during the worst financial crisis in six decades. Of creditor claims against the banks, Gunnlaugsson says this is not public debt and never will be. Successive Icelandic governments have forced banks to write off mortgage debts to help households. The governments 2014 budget sets aside about 43 percent of its spending for the Welfare Ministry, a level that is largely unchanged since before the crisis. Inflation, which peaked at 19 percent in January 2009, ... was 4.2 percent in December. To support households, Gunnlaugsson in November unveiled a plan to provide as much as 7 percent of gross domestic product in mortgage debt relief. The government intends to finance the plan, which the OECD has criticized as being too blunt, partly by raising taxes on banks.
Note: Why is Iceland's major success in letting banks fail getting so little press coverage? For a possible answer, click here. For more on government responses to the banking crisis and their impacts on people, see the deeply revealing reports from reliable major media sources available here.
More than a dozen family members of China's top political and military leaders are making use of offshore companies based in the British Virgin Islands, leaked financial documents reveal. The brother-in-law of China's current president, Xi Jinping, as well as the son and son-in-law of former premier Wen Jiabao are among the political relations making use of the offshore havens, financial records show. The documents also disclose the central role of major Western banks and accountancy firms ... in the offshore world, acting as middlemen in the establishing of companies. The Hong Kong office of Credit Suisse, for example, established the BVI company Trend Gold Consultants for Wen Yunsong, the son of Wen Jiabao, during his father's premiership while PwC and UBS performed similar services for hundreds of other wealthy Chinese individuals. The disclosure of China's use of secretive financial structures is the latest revelation from "Offshore Secrets", a two-year reporting effort led by the International Consortium of Investigative Journalists (ICIJ), which obtained more than 200 gigabytes of leaked financial data from two companies in the British Virgin Islands, and shared the information with the Guardian and other international news outlets. In all, the ICIJ data reveals more than 21,000 clients from mainland China and Hong Kong have made use of offshore havens in the Caribbean. Between $1tn and $4tn in untraced assets have left China since 2000, according to estimates.
Note: Read the ICIJ's full report of the latest offshore links. For more on financial corruption, see the deeply revealing reports from reliable major media sources available here.
The European Union has levied a record antitrust fine of 1.71 billion ($2.3 billion) on six European and U.S. banks and brokers for rigging benchmark interest rates. Deutsche Bank was hit with the single biggest penalty of 725.4 million for participating in illegal cartels to manipulate the Euro Interbank Offered Rate, or Euribor, and London interbank offered rate, or Libor. "What is shocking about the Libor and Euribor scandals is ... the collusion between banks who are supposed to be competing with each other," said Joaquin Almunia, Europe's top antitrust official. Other banks fined [were] Societe Generale (446 million), Royal Bank of Scotland (391 million), JP Morgan (79.9 million) and Citigroup (70 million). U.K.-based broker RP Martin was fined 247,000 for facilitating one infringement. EU investigators said the Euribor cartel operated for nearly three years between 2005 and 2008, as traders discussed submissions used to calculate the benchmark rate, and compared trading and pricing strategies. They also discovered illegal collusion in the setting of Libor in Japanese yen between 2007 and 2010. UBS and Barclays, [which] have already been fined by regulators in the U.K. and U.S. for Libor rigging, were spared further punishment because they cooperated with the European Commission investigation. They dodged new fines of 2.5 billion and 690 million respectively. The scandal broke in the middle of 2012 when Barclays admitted trying to manipulate Libor, which together with related rates is used to price trillions of dollars of financial products around the world.
Note: Notice that no one is going to jail and no one is being personally fined for these incredibly outrageous manipulations. For an analysis that argues the "record fines" are really just a "slap on the wrist" for the big banks, click here. For more on financial corruption, see the deeply revealing reports from reliable major media sources available here.
When the fires from the 2007-08 financial crisis were still being fought, JPMorgan Chase looked like a winner. Not only was JPMorgan Chase able to scoop up former rivals Washington Mutual and Bear Stearns for bargain basement prices, but its stock value shot up by nearly 31 percent over the past 4 1/2 years. But this year has been a little less kind to JPMorgan Chase. On [November 20) JPMorgan Chase agreed to a $13 billion settlement with the federal government over selling toxic mortgage investments. It also admitted to wrongdoing in knowingly peddling the instruments. Both settlements are for the "incomplete information" JPMorgan Chase gave to the pension funds for their purchases of toxic securities during the years 2004 to 2008. Even for a colossus such as JPMorgan Chase, $13 billion is a lot of money - about half of its annual profit. Forcing JPMorgan to admit wrongdoing - a rare concession - may open the door to more headaches for the company, especially because the government is continuing a criminal probe into its mortgage prices. The scale of the devastation is still so enormous that the only question left for the Justice Department to answer is why no one from any of the big banks has yet to go to jail. Wall Street's wrongdoing was about more than a dollar cost - it was about the widespread human suffering that remains with us today. Jail time would be more than appropriate, but so far the banks have been able to pay their way out of it.
Note: Because JP Morgan Chase can write off $11 billion of the fine as tax deductible, the real fine is actually reduced by $4 billion to about $7 billion, just one-third of Chase's $21 billion profit in the year 2012. For more on financial fraud, see the deeply revealing reports from reliable major media sources available here.
Investigative journalist Greg Palast has obtained a secret memo authored by then deputy Treasury secretary Larry Summers and his protg Timothy Geithner detailing their plans to roll back financial regulation. In the piece, titled "The Confidential Memo at the Heart of the Global Financial Crisis", [Palast] writes: "The Memo confirmed every conspiracy freak's fantasy: that in the late 1990s, the top U.S. Treasury officials secretly conspired with a small cabal of banker big-shots to rip apart financial regulation across the planet. When you see 26.3 percent unemployment in Spain, desperation and hunger in Greece, riots in Indonesia and Detroit in bankruptcy, go back to this End Game memo, the genesis of the blood and tears." [Palast:] This is really important right now because Larry Summers is President Obama's top choice to become head of a Federal Reserve Board. He would take Ben Bernanke's place. And what this memo is--they call it the "end game memo". Geithner calls it the "end game". And what's the game being played? The memo asks Summers to get back to the five biggest, most powerful bankers in the United States to act on and determine what our policy should be for world governance of the banking system. Basically, there were secret calls going between Larry Summers and the head of Bank of America, the head of Goldman Sachs, the head of Citibank and Merrill, the five big boys, to find out what should happen to the world financial policing order. And the answer was: smash it. Summers was holding secret meetings with the big bankers to come up with a scheme to eliminate financial regulation across the planet.
Note: Greg Palast is a New York Times-bestselling author and a freelance journalist for the British Broadcasting Corporation as well as the British newspaper The Observer. He is one of the few journalists uncovering the deepest layers of secrecy in our world. For a key past report of his on elections corruption, click here.
CNBCs BRIAN SULLIVAN: Is there anyone else in the Senate that is a professor? ELIZABETH WARREN: I don't think so. ... We had the big crash in 2008. What does everyone say about it? They say too much concentration in financial services creates too big to fail. It puts us at bigger risk. And what's happened since 2008? The four biggest financial institutions are now 30% bigger than they were in 2008. The central premise behind a 21st century Glass-Steagall is to say if you want to get out there and take risks, go ahead and do it. But ... you can't get access to FDIC insured deposits when you do. That way ... at least one portion of our banking sector stays safe. From 1797 to 1933, the American banking system crashed about every 15 years. In 1933, we put good reforms in place, for which Glass-Steagall was the centerpiece, and from 1933 to the early 1980s, thats a 50 year period, we didnt have any of that none. We kept the system steady and secure. And it was only as we started deregulating, [you hit] the S&L crisis, and what did we do? We deregulated some more. And then you hit long-term capital management at the end of the 90s, and what did we do as a country? This country continued to deregulate more. And then we hit the big crash in 2008. You are not going to defend the proposition that regulation can never work, it did work. SULLIVAN: I didnt say regulation never worked, Senator. By far and away, and I agree, there were fewer bank failures in that time after Glass-Steagall. ELIZABETH WARREN: Fewer, as in, of the big ones, zero.
Note: Sen. Warren is one of the few bright lights in Congress. Watch this interview to see why. To read about later censorship of this interview by NBC, click here.
The probe of Libor manipulation is proving to be the tip of the iceberg as inquiries into assets from derivatives to foreign exchange show that if theres a chance to rig benchmark rates in world markets, someone is usually willing to try. Singapores monetary authority last week censured 20 banks for attempting to fix interest rate levels in the island state and ordered them to set aside as much as $9.6 billion. Britains markets regulator is looking into the $4.7 trillion-a-day currency market after Bloomberg News reported that traders have manipulated key rates for more than a decade, citing five dealers. Its happened time and again: all of these markets have been influenced by major market-makers, which is a polite way of saying theyve been rigged, Charles Geisst, a finance professor at Manhattan College in Riverdale, New York, said. While the indexes under scrutiny are little known to the public, their influence extends to trillions of dollars in securities and derivatives. Barclays, UBS and Royal Bank of Scotland have been fined about $2.5 billion in the past year for distorting the London interbank offered rate, which is tied to $300 trillion worth of securities. Regulators are also probing ISDAfix, a measure used in the $370 trillion interest-rate swaps market, as well as how some oil products prices are set. Inquiries are broadening into the transparency of benchmarks whose levels can be determined by the same people whose income they affect. In the case of Libor, traders who stood to profit worked with bank employees responsible for submissions for the benchmark to rig the price.
Note: To read highly revealing major media articles showing just how crazy and unregulated the derivatives market is, click here. For deeply revealing reports from reliable major media sources on financial corruption, click here.
One of the world's most respected economists has said Wall St is full of "crooks" and hasn't reformed its "pathological" culture since the financial crash. Professor Jeffrey Sachs told a high-powered audience at the Philadelphia Federal Reserve earlier this month that the lack of reform was down to a docile president, a docile White House and a docile regulatory system that absolutely cant find its voice. Sachs, from Columbia University, has twice been named one of Time magazines 100 Most Influential People in the World, and is an adviser to the World Bank and IMF. What has been revealed, in my view, is prima facie criminal behavior, he said. Its financial fraud on a very large extent. Theres also a tremendous amount of insider trading. We have a corrupt politics to the core, I am afraid to say, and . . . both parties are up to their neck in this. This has nothing to do with Democrats or Republicans." Sachs described an environment of Wall Street influencing politicians with growing campaign contributions. In the 2012 election cycle, political contributions by the securities and investment sector hit $271.5 million, compared with $176 million in 2008, according to the Center for Responsive Politics. I am going to put it very bluntly: I regard the moral environment as pathological. They have no responsibility to pay taxes; they have no responsibility to their clients; they have no responsibility to people, to counterparties in transactions, he said. They are tough, greedy, aggressive and feel absolutely out of control in a quite literal sense, and they have gamed the system to a remarkable extent.
Note: For deeply revealing reports from reliable major media sources on criminal practices of Wall Street corporations, click here.
Conspiracy theorists of the world, ... we skeptics owe you an apology. You were right. The world is a rigged game. The world's largest banks may be fixing the prices of, well, just about everything. You may have heard of the Libor scandal, in which ... perhaps as many as 16 ... banks have been manipulating global interest rates, in the process [manipulating] the prices of upward of $500 trillion ... worth of financial instruments. Now Libor may have a twin brother. Word has leaked out that the London-based firm ICAP, the world's largest broker of interest-rate swaps, is being investigated by American authorities for behavior that sounds eerily reminiscent of the Libor mess. Regulators are looking into whether or not a small group of brokers at ICAP may have worked with up to 15 of the world's largest banks to manipulate ISDAfix, a benchmark number used around the world to calculate the prices of interest-rate swaps. Interest-rate swaps are a tool used by big cities, major corporations and sovereign governments to manage their debt, and the scale of their use is almost unimaginably massive. [It's] a $379 trillion market, meaning that any manipulation would affect a pile of assets about 100 times the size of the United States federal budget. It should surprise no one that among the players implicated in this scheme to fix the prices of interest-rate swaps are the same megabanks including Barclays, UBS, Bank of America, JPMorgan Chase and the Royal Bank of Scotland that serve on the Libor panel that sets global interest rates.
Note: For deeply revealing reports from reliable major media sources on the criminal practices of the financial industry, click here.
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