Financial News Articles
Below are key excerpts of revealing news articles on financial corruption 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.
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Federal regulators fined Wells Fargo a record $1.7 billion on Tuesday for “widespread mismanagement” over multiple years that harmed over 16 million consumer accounts. Wells Fargo’s “illegal activity” included repeatedly misapplying loan payments, wrongfully foreclosing on homes, illegally repossessing vehicles, incorrectly assessing fees and interest and charging surprise overdraft fees. The CFPB ordered Wells Fargo to pay the $1.7 billion civil penalty in addition to more than $2 billion to compensate consumers for a range of “illegal activity.” CFPB officials say this is the largest penalty imposed by the agency. The misconduct described by the CFPB echoes previously reported revelations that have emerged about Wells Fargo since 2016 when the bank’s fake-accounts scandal created a national firestorm. “Wells Fargo’s rinse-repeat cycle of violating the law has harmed millions of American families,” Rohit Chopra, the CFPB’s director, said in a statement. Chopra noted that the settlement does not provide immunity for individuals at Wells Fargo, and the agency recognizes the $3.7 billion in fines and restitution will not fix the bank’s problems. Although Chopra credited Wells Fargo with making some progress, he said it’s not clear “they are making rapid enough progress” and said the agency is concerned that the bank’s product launches, growth initiatives and profit-boosting efforts have “delayed needed reform.”
Note: In 2016, Wells Fargo was caught opening millions of fake accounts in its customers' names. For more along these lines, see concise summaries of deeply revealing news articles on financial system corruption from reliable major media sources.
Amid a humanitarian crisis compounded by mass layoffs and collapsing economic activity, the last course our legislators should be following is the one they appear to be on right now: bailing out shareholders and executives who, while enriching themselves, spent the past decade pushing business corporations to the edge of insolvency. The $500bn dollars of public money that Congresss relief bill provides will be used for a corporate bailout, with the only oversight in the hands of an independent council similar to the one used in the 2008 financial crisis. While that body was able to report misuses of taxpayer money, it could do nothing to stop them. As currently structured, there is nothing to keep this bailout from, like its predecessor, putting cash directly into the hands of those at the top rather than into the hands of workers. Without strong regulation and accountability, asking corporations to preserve jobs with these funds will be nothing more than a simple suggestion, leaving millions of everyday Americans in financial peril. If not properly managed, this economic disaster has the potential to be the worst in American history. Our country cannot allow a small number of executives and shareholders to profit from taxpayer funds that we have injected into these corporations for reasons of pure emergency. We need to stop this rot at the core of our economic system and realign the priorities of government with those of workers and consumers.
Note: For more along these lines, see concise summaries of deeply revealing news articles on government corruption and the coronavirus pandemic from reliable major media sources.
In Homewreckers, his new book about the aftermath of the 2008 financial crisis, [Aaron] Glantz skillfully tells a bigger story about American housing thats tortuous, confounding and ultimately enraging. Along with Race for Profit: How Banks and the Real Estate Industry Undermined Black Homeownership, by Keeanga-Yamahtta Taylor, Homewreckers shows what happens when private speculators get buoyed by government largess while non-tycoons are largely left to fend for themselves. After the housing bubble burst, the government was desperate to get lending banks off its books, and so it offered a sweet deal to prospective buyers of the banks: Those private investors could keep the gains on any loans held by the bank, but if the loans lost money, the government would bear most of the cost. It was like a mutant version of the subprime bubble that led to the financial crisis: Rather than renegotiate the loans, the new owners of these lending banks found there was more money to be made in foreclosing on the properties and becoming a class of landlord that had never been seen before, charging rent and fees to tenants not infrequently the previous owners who were foreclosed on while hoarding the equity for themselves. Corporate landlords ... are also more likely to buy properties in neighborhoods with large concentrations of African-American and Latino residents, who end up paying higher and higher rents that ultimately transfer wealth from their communities to investors far away.
Note: For more along these lines, see concise summaries of deeply revealing news articles on financial industry corruption from reliable major media sources.
In 1998, Jeffrey Epstein purchased Little Saint James in the US Virgin Islands and began trafficking girls as young as 14 into "sexual servitude" at the secluded island. The same year, he opened his first account with JPMorgan Chase, the start of a lucrative partnership for the Wall Street giant that would continue for years after the late financier had been "red flagged" by the bank as a child sex offender. To keep his illicit sex-trafficking scheme running, Epstein needed access to large amounts of cash to pay off recruiters and attempt to silence victims. JPMorgan is alleged to have "pulled the levers" through which Epstein paid his network of enablers, according to a lawsuit filed by the US Virgin Islands (USVI) Attorney General in a US court. The lawsuit claims that JPMorgan concealed wire and cash transactions that were part of a "criminal enterprise" whose currency was vulnerable and desperate women and girls, groomed and recruited over decades by Epstein and his chief lieutenant Ghislaine Maxwell. In separate lawsuits, several survivors of Epstein's abuse sued JPMorgan and Deutsche Bank accusing them of actively enabling his abuse. The sprawling US Virgin Islands legal action is still pending. It has already drawn in some of the world's wealthiest individuals including billionaire JPMorgan CEO Jamie Dimon, Tesla CEO and Twitter owner Elon Musk, Google's co-founders Larry Page and Sergey Brin, and Microsoft co-founder Bill Gates. All have denied any involvement in Epstein's offending.
Note: One Nation Under Blackmail is a new book by Whitney Webb, an investigative journalist who explores the deep ties between Jeffrey Epstein and US and Israeli Intelligence criminal networks. For more along these lines, see concise summaries of news articles on Jeffrey Epstein's child sex ring from reliable major media sources.
JPMorgan Chase & Co. had ties to Jeffrey Epstein that ran deeper than the bank has acknowledged and extended years beyond when it decided to close the convicted sex offender’s accounts. Mary Erdoes, a top lieutenant to Chief Executive Jamie Dimon, made two trips to Epstein’s townhouse on Manhattan’s Upper East Side, in 2011 and 2013, when Epstein still was a client of the bank, said the people familiar with the matter. She exchanged dozens of emails with him and discussed sharing with him fees related to a charitable fund the bank was considering launching. John Duffy, who ran JPMorgan’s U.S. private bank for the ultrarich, went to Epstein’s townhouse for a meeting in April 2013, the people said. One month later, the private bank renewed an authorization allowing Epstein to borrow money against his accounts despite repeated warnings from compliance staffers about his unusual banking practices. Justin Nelson, one of Epstein’s bankers at JPMorgan, had about a half-dozen meetings at Epstein’s townhouse between 2014 and 2017. He also traveled to Epstein’s ranch in New Mexico in 2016. Epstein was convicted of soliciting a minor for prostitution in 2008 and forced to register as a sex offender. The new details show that JPMorgan was treating Epstein like a star client after his first conviction and despite repeated warnings from its own employees. And after JPMorgan closed Epstein’s accounts, bankers kept meeting with him for years.
Note: One Nation Under Blackmail is a new book by Whitney Webb, an investigative journalist who explores the deep ties between Jeffrey Epstein and US and Israeli Intelligence criminal networks. Epstein had many concerning associations, including with Noam Chomsky as reported in Webb's most recent article. For more along these lines, see concise summaries of deeply revealing news articles on banking corruption and Jeffrey Epstein's crime ring from reliable major media sources.
Among the many surprising assets uncovered in the bankruptcy of the cryptocurrency exchange FTX is a relatively tiny one that could raise big concerns: a stake in one of the country’s smallest banks. The bank, Farmington State Bank in Washington State, has a single branch and, until this year, just three employees. It did not offer online banking or even a credit card. The tiny bank’s connection to the collapse of FTX is raising new questions about the exchange and its operations. The ties between FTX and Farmington State Bank began in March when Alameda Research, a small trading firm and sister to FTX, invested $11.5 million in the bank’s parent company, FBH. At the time, Farmington was the nation’s 26th-smallest bank out of 4,800. Its net worth was $5.7 million. FTX is a now bankrupt company that was one of the world’s largest cryptocurrency exchanges. A judge allowed the law firm Sullivan & Cromwell to continue advising FTX on bankruptcy. It’s unclear how FTX was allowed to buy a stake in a U.S.-licensed bank, which would need to be approved by federal regulators. Banking veterans say it’s hard to believe that regulators would have knowingly allowed FTX to gain control of a U.S. bank. “The fact that an offshore hedge fund that was basically a crypto firm was buying a stake in a tiny bank for multiples of its stated book value should have raised massive red flags for the F.D.I.C., state regulators and the Federal Reserve,” said Camden Fine, a bank industry consultant.
Note: An in-depth investigation by Whitney Webb and Ed Berger further unearths the mysterious connections between FTX and Farmington State Bank. Extending far beyond Sam Bankman-Fried and FTX, they make a case for a deeper criminal network at play, with troubling connections to this bank. Incidentally, the firm Sullivan & Cromwell has old connections with the CIA. For more along these lines, see concise summaries of deeply revealing news articles on financial industry corruption from reliable major media sources.
Thousands of officials across the government’s executive branch reported owning or trading stocks that stood to rise or fall with decisions their agencies made, a Wall Street Journal investigation has found. More than 2,600 officials at agencies from the Commerce Department to the Treasury Department, during both Republican and Democratic administrations, disclosed stock investments in companies while those same companies were lobbying their agencies for favorable policies. That amounts to more than one in five senior federal employees across 50 federal agencies reviewed by the Journal. A top official at the Environmental Protection Agency reported purchases of oil and gas stocks. The Food and Drug Administration improperly let an official own dozens of food and drug stocks on its no-buy list. A Defense Department official bought stock in a defense company five times before it won new business from the Pentagon. The Journal obtained and analyzed more than 31,000 financial-disclosure forms for about 12,000 senior career employees, political staff and presidential appointees. The review spans 2016 through 2021 and includes data on about 850,000 financial assets and more than 315,000 trades. More than five dozen officials at five agencies, including the Federal Trade Commission and the Justice Department, reported trading stock in companies shortly before their departments announced enforcement actions, such as charges and settlements, against those companies.
Note: You can read the entire article free of charge on this webpage. For more along these lines, see concise summaries of deeply revealing news articles on government corruption from reliable major media sources.
How was Congress able to come up with $2 trillion so quickly? Where is the money coming from? On Friday, the House of Representatives, led by Speaker Nancy Pelosi ... waved away that question, preparing to rubber-stamp a $2 trillion Senate package aimed at staving off economic collapse. The details of the legislation particularly the $500 billion, strings-optional corporate slush fund may be shameful ... but the moment is instructive ... as it became clear that concerns about deficits and revenue had evaporated. Congress has ignored millions of people who have existed in a state of crisis for decades. The people of Flint, Michigan, (and elsewhere) still do not have safe drinking water. Millions of kids go hungry each day. There has been no multitrillion-dollar spending bill to combat these and other domestic emergencies. Instead, lawmakers have deprived communities of critical investments that could have attenuated their emergencies, often hiding behind the excuse that there isnt enough money in the budget to deal with problems like these. Congress is doing now what it could always have done. Uncle Sam cant run out of dollars. The U.S. government is the issuer of our currency the U.S. dollar which means that ... it can never find itself in a situation in which it has bills coming due that it cant afford to pay. If the votes are there, the money can always be made available. When all of this is behind us, to the extent that it ever can be, lets not forget what weve learned.
Note: The entire article at the link above raises important questions about why Congress hasn't made more money available in the past for much needed support of a variety of important programs. The author, Stephanie Kelton, served as the chief economist for Democrats on the U.S. Senate Budget Committee. For more along these lines, see concise summaries of deeply revealing news articles on banking and financial corruption from reliable major media sources. Then explore the excellent, reliable resources provided in our Banking Corruption Information Center.
Robert Mazur was a federal agent. He infiltrated Pablo Escobar’s Colombian drug cartel for two years in the mid-1980s by pretending to be Robert Musella, a money-laundering, mob-connected businessman. “My role was to come across to the cartel as a credible money launderer,” Mazur said. As an undercover operative, he was working with the Bank of Credit and Commerce International, a Luxembourg-based bank with branches in more than 70 countries, in order to launder the cartel’s money. BCCI was known to have accounts of drug operatives, terrorists, dirty bankers and others who want to hide money. At one point, he was out at a social event in Miami with a senior bank officer at BCCI who asked him point blank, “You know who the biggest money launderer in the world is? It’s the Federal Reserve, of course.” That sounds like a crazy allegation, but Mazur said the banker connected the dots for him: In Colombia, it’s illegal for anyone to have a U.S. dollar account. But at the state-run Bank of the Republic there is a window they call the “sinister window” or the “anonymous window.” There, you can trade in as much U.S. currency as you want. The central bank exchanges it for Colombian pesos at a high rate immediately. Mazur recalls the banker asking: “What do you think happens with that cash? It gets put on pallets, they shrink-wrap it and they’re sending hundreds of millions of dollars back to the Federal Reserve. Why didn’t anyone ... ask where this money was coming from?”
Note: For more along these lines, see concise summaries of deeply revealing news articles on financial system corruption from reliable major media sources.
The IMF and other neoliberal institutions in Ukraine are saying that there are quite a few jobs being created there. But the people I speak to can’t find jobs. On top of that, there are those 12 million people who are abroad. Where will there be jobs for them? There is a lot of talk about the Marshall Plan. But the main lessons from the Marshall Plan I did not see reflected in these recovery plans. First of all, there was the write-off of debts. Second of all, there were grants given to countries, and states were allowed to act as investors and were allowed to directly buy food for families or buy supplies for industries. This is not the case in Ukraine. In reality, a big part of the financial assistance given to Ukraine is in the form of debt. The help supposedly given by the IMF of $15 billion ... is actually $15 billion of debt. And because it’s debt, the interest rate on this debt will be something like 7 or 8 percent. What the European Union is doing with Ukraine is what they did with Greece after 2010. The European Union made an agreement in 2010 with the IMF to gather money to give to the Greek government with very strong and brutal conditionalities. And that’s exactly what [is happening] with the type of assistance given to Ukraine. The debt trap for Ukraine is very dangerous. With the new financial assistance given to Ukraine, in the next ten years, the debt will increase by something like $40 billion. Essentially, from $132 to $170 billion. And the creditors know perfectly that it will be impossible for Ukraine to pay back all this debt.
Note: For more along these lines, see concise summaries of deeply revealing news articles on war and banking corruption from reliable major media sources.
JPMorgan Chase reached a tentative settlement with sexual abuse victims of Jeffrey Epstein, the deceased financier, after weeks of embarrassing disclosures about the bank's longstanding relationship with him. David Boies, one of the lead lawyers for the victims, said the bank was prepared to pay $290 million to resolve the lawsuit. The proposed deal would settle a lawsuit filed ... on behalf of victims who were sexually abused by Mr. Epstein over a roughly 15-year period when they were teenage girls and young women. The number of victims could potentially rise to more than 100. JPMorgan still faces a related lawsuit by the government of the U.S. Virgin Islands. That suit remains the biggest outstanding Epstein-related case after years of lawsuits against Mr. Epstein's estate and Ghislaine Maxwell's conviction in 2021 in Manhattan federal court for helping Mr. Epstein engage in sex trafficking. The lawsuit filed by the victims claimed that JPMorgan ignored repeated warnings that Mr. Epstein had been trafficking teenage girls and young women for sex, even after he registered as a sex offender and pleaded guilty in a 2008 Florida case to soliciting prostitution from a teenage girl. The complaint said the bank had overlooked red flags in Mr. Epstein's activity because it valued him as a wealthy client who had access to dozens of even wealthier people. Legal documents revealed that after designating Mr. Epstein a "high risk client" in 2006, the bank kept him on as a customer.
Note: One Nation Under Blackmail is a new book by Whitney Webb, an investigative journalist who explores the deep ties between Jeffrey Epstein and US and Israeli Intelligence criminal networks. For more along these lines, see concise summaries of news articles on Jeffrey Epstein's child sex ring from reliable major media sources.
In recent months, the Pentagon has moved to provide loans, guarantees, and other financial instruments to technology companies it considers crucial to national security — a step beyond the grants and contracts it normally employs. So when Silicon Valley Bank threatened to fail in March following a bank run, the defense agency advocated for government intervention to insure the investments. The Pentagon had even scrambled to prepare multiple plans to get cash to affected companies if necessary, reporting by Defense One revealed. Their interest in Silicon Valley Bank stems from the Pentagon’s brand-new office, the Office of Strategic Capital. The secretary of defense established the OSC in December specifically to counteract the investment power of adversaries like China in U.S. technologies, and to secure separate funding for companies whose products are considered vital to national security. The national security argument for bailout, notably, found an influential friend in the Senate. As the Biden administration intervened to protect Silicon Valley Bank depositors on March 12, Sen. Mark Warner, D-Va., who chairs the powerful Senate Intelligence Committee and also sits on the Banking Committee, issued a press release warning that the bank run posed a national security risk. Warner — the only member of Congress to have publicly tied SVB to national security — has received significant contributions from the financial sector. Since 2012, Warner has received over $21,000 from Silicon Valley Bank’s super PAC.
Note: Many tech startups with funds in Silicon Valley Bank were working on projects with defense and national security applications. Explore revealing news articles on the rising concerns of the emerging technologies that the Defense Department is investing in, given their recent request for $17.8 billion to research and develop artificial intelligence, autonomy, directed energy weapons, cybersecurity, 5G technology, and more.
A US Virgin Islands investigations into the sex trafficker Jeffrey Epstein’s ties to an American bank issued subpoenas to four wealthy business leaders on Friday, extending its reach into the highest echelons of tech, hospitality and finance. The subpoenas issued to the Google co-founder Sergey Brin, Hyatt Hotels chairperson Thomas Pritzker, American-Canadian businessman Mortimer Zuckerman and former CAA talent agency chairperson Michael Ovitz are crafted to gather more information about Epstein’s relationship with JPMorgan Chase. The Virgin Islands’ lawsuit against JP Morgan, the world’s largest bank in terms of assets, alleges that the institution “facilitated and concealed wire and cash transactions that raised suspicion of – and were in fact part of – a criminal enterprise whose currency was the sexual servitude of dozens of women and girls in and beyond the Virgin Islands”. “Human trafficking was the principal business of the accounts Epstein maintained at JP Morgan,” it said. The disgraced financier ... owned two private islands – Little Saint James, or “Epstein Island”, and Great Saint James – in the American territory, and authorities there have secured a $105m settlement from his estate. The demand for any communications and documents related to the bank and Epstein from four of the wealthiest people in the US comes days after it was reported that Jamie Dimon, JP Morgan’s chairperson and chief executive, is expected to be deposed in the case.
Note: For more along these lines, see concise summaries of deeply revealing news articles on Jeffrey Epstein's child sex trafficking ring from reliable major media sources.
The former attorney general for the Virgin Islands, who recently secured a $105 million settlement from the estate of Jeffrey Epstein, was recently fired following months of friction between her and the U.S. territory’s governor over the handling of the investigation into the disgraced financier, according to people briefed on the matter. Denise N. George, the former official, was dismissed by Albert Bryan Jr., the governor of the Virgin Islands, on New Year’s Eve, four days after her office sued JPMorgan Chase in federal court in Manhattan for its dealings with Mr. Epstein, who died of an apparent suicide in 2019 while in federal custody. The timing of Ms. George’s firing fueled media speculation in the Virgin Islands and beyond that the suit against JPMorgan was the immediate cause. In late December, Ms. George’s office sued JPMorgan in federal court in Manhattan, claiming that bank was derelict in providing banking services to Mr. Epstein during the time he was charged with sexually abusing teenage girls and young women at Little St. James and elsewhere in the U.S. The lawsuit accused JPMorgan of facilitating and concealing wire and cash transactions that should have raised suspicions that Mr. Epstein was engaging in the sexual trafficking of teen girls and young women. The lawsuit contends the bank essentially turned a “blind eye” to Mr. Epstein’s conduct because it was profitable. JPMorgan, the largest U.S. bank by assets, was Mr. Epstein’s primary banker from the late 1990s to 2013.
Note: For more along these lines, see concise summaries of deeply revealing news articles on banking corruption and Jeffrey Epstein's sex trafficking ring from reliable major media sources.
Deutsche Bank (DBK.DE) has agreed to pay $150m (119m) over compliance failings in part linked to dealings with Jeffrey Epstein. New Yorks Department of Financial Services said in a statement on Tuesday it had imposed the penalty on Deutsche Banks New York branch for significant compliance failures in connection with the Banks relationship with Jeffrey Epstein, the accused child sex trafficker who died in police custody last year. The penalty also covers anti-money laundering failings linked to Danske Bank Estonia and Middle Eastern bank FBME. Epstein, who is believed to have been a billionaire, became a client of Deutsche Banks in 2013, five years after he pleaded guilty to procuring for prostitution a girl below age 18 in Florida. Despite coverage of the settlement and subsequent allegations against Epstein, investigators found Deutsche Bank failed to properly monitor his account. Hundreds of transactions totalling millions of dollars that raised red flags were missed, the New York Department of Financial Services said. These included payments to Epsteins alleged co-conspirators, settlement payments with victims totalling $7m, payments to Russian models, payments for womens school tuition and expenses, and payments to numerous women with Eastern European surnames that were consistent with public allegations of prior wrongdoing. Repeated suspicious cash withdrawals by Epstein totally over $800,000 over four years also failed to raise concerns.
Note: 60 Minutes Australia has produced an excellent segment on Jeffrey Epstein and his recently arrested sidekick Ghislaine Maxwell. How did Epstein get away with sexually abusing hundreds of teenage girls for decades? The government and multiple police departments knew what was happening, yet key officials in high positions of power protected him. For more along these lines, see concise summaries of deeply revealing news articles on Jeffrey Epstein and financial industry corruption from reliable major media sources.
In his annual letter to shareholders, distributed last week, JPMorgan Chase CEO Jamie Dimon took aim at socialism, warning it would be a disaster for our country, because it produces stagnation, corruption and often worse. Dimon should know. He was at the helm when JPMorgan received a $25bn socialist-like bailout in 2008, after it and other Wall Street banks almost tanked because of their reckless loans. Dimon subsequently agreed to pay the government $13bn to settle charges that the bank overstated the quality of mortgages it was selling. According to the Justice Department, JPMorgan acknowledged it had regularly and knowingly sold mortgages that should have never been sold. To state it another way, Dimon and other Wall Street CEOs helped trigger the 2008 financial crisis when the dangerous and irresponsible loans their banks were peddling on which they made big money finally went bust. But instead of letting the market punish the banks (which is what capitalism is supposed to do) the government bailed them out and eventually levied paltry fines which the banks treated as the cost of doing business. Call it socialism for rich bankers. Americas five biggest banks, including Dimons, now control 46% of all deposits, up from 12% in the early 1990s. But, of course, Dimon isnt really ... concerned about socialism. Dimons real concern is that America may end the kind of socialism he and other denizens of the Street depend on bailouts, regulatory loopholes, and tax breaks.
Note: The above was written by former US secretary of labor Robert Reich. For more along these lines, see concise summaries of deeply revealing financial industry corruption news articles from reliable major media sources.
For a long time entrepreneurs, investors and advocates of sustainable investing have spoken longingly about the $2 trillion of institutional investor dollars that have been reputed to be sitting skeptically on the sidelines, teasing everyone with the prospect of finally putting their sizeable investment muscle to work to scale the sector. Throughout this period, institutional investors have argued that they have withheld their dollars over sound investment concerns with the sector. For a number of years, innovative entrepreneurs in growth sectors like food, energy, water and waster have been doing the heavy lifting to demonstrate that some of these smaller-scale projects can provide attractive investment returns for those investors willing to step in and pioneer these structures. Institutional investors are taking notice. Now a new investor survey and report issued by Bright Harbor Advisors, a private fund advisor, provides some compelling evidence that institutional investors are warming to sustainable investing. 81% now have some type of sustainability, impact, or ESG [Environment, Social, and Governance] mandate as part of their formal investment policy. And an increasing number are allocating internal resources to implement these policies. About a third of respondents have someone on their team dedicated to the space and nearly 20% have sustainable private fund managers in a dedicated investment bucket.
Note: See this Forbes article for more on these inspiring shifts in investing. Explore a treasure trove of concise summaries of incredibly inspiring news articles which will inspire you to make a difference.
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.
On Thursday, the Wall Street Journal reported that Wells Fargo recently discovered that employees were improperly altering the documents of business borrowers, adding information to the accounts without the consent or notifying the clients. The latest issue comes only a week after news came out that Wells Fargo admitted it had improperly collected fees on a Tennessee public pension fund. Improper fees could be a widespread problem in its pension fund business. The banks wealth management unit is also under investigation for pressuring clients into rolling over their low-cost 401(k) accounts into more expensive alternatives. Wells Fargo has regularly said its problems are in the past, without spending the money it should to actually put those problems in the past. Wells Fargo, like other banks, doesnt break out what it spends on compliance, and says its generally spending more, but in its most recent quarter its hard to see where. In February, the Federal Reserve sanctioned Wells Fargo for not having proper risk controls in place. The bank has since told shareholders it plans to cut costs, not raise them in order to improve compliance. The most recent problem ... appears to have come as Wells Fargo raced to comply with an order from regulators that it collect information on more than 100,000 accounts that it was supposed to have. It appears employees improperly altered the files, potentially adding false information, as part this regulatory review, once again showing a lack of oversight.
Note: Last year, it was reported that a Wells Fargo insurance scam defrauded 570,000 customers. The year before, this bank was caught opening millions of fake accounts using stolen customer identities. Wells Fargo fires employees and pays fines whenever these crimes are uncovered. But no bank executives are criminally prosecuted. And new problems continue coming to light. For more along these lines, see concise summaries of deeply revealing financial industry corruption news articles from reliable major media sources.
The Trump administration has waived part of the punishment for five megabanks whose affiliates were convicted and fined for manipulating global interest rates. One of the Trump administration waivers was granted to Deutsche Bank - which is owed at least $130 million by President Donald Trump ... and has also been fined for its role in a Russian money laundering scheme. The waivers were issued in a little-noticed announcement published in the Federal Register. Under laws designed to protect retirement savings, financial firms whose affiliates have been convicted of violating securities statutes are effectively barred from ... managing those savings. However, that punishment can be avoided if the firms manage to secure a special exemption from the U.S. Department of Labor. In late 2016, the Obama administration extended ... one-year waivers to five banks - Citigroup, JPMorgan, Barclays, UBS and Deutsche Bank. Late last month, the Trump administration issued new, longer waivers for those same banks. Leading up to the new waiver for Deustche Bank, Trumps financial relationship with the firm has prompted allegations of a conflict of interest. In 2016, the Wall Street Journal reported Trump and his companies have received at least $2.5 billion in loans from Deutsche Bank and co-lenders. In 2015, Deutsche Bank pled guilty in the U.S. to wire fraud for its role in the [LIBOR] scandal. Less than two years later ... Deutsche Bank agreed to a $7.2 billion settlement with the Justice Department for misleading investors.
Note: The megabanks again get away with huge manipulations resulting in financial losses for many millions, yet hardly any media focuses on how these banks hardly get a slap on the wrist for their huge criminal offenses. For more along these lines, see concise summaries of deeply revealing news articles on corruption in government and in the financial industry.
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