Financial News ArticlesExcerpts of key news articles on banking and finance
According to the New York Department of Financial Services, a banking regulator, Goldman hired Rohit Bansal from the Federal Reserve Bank of New York in May 2014, "in large part for the regulatory experience and knowledge he had gained while working at the New York Fed." Goldman hired Bansal despite the fact that he had been forced to resign from the Fed for breaking the rules there. Once at Goldman, Bansal was instructed to work on a bank that he had supervised while at the Fed, despite explicit prohibitions against him doing so, NYDFS said. Bansal later used confidential information, some of which he obtained from his prior employment at the NY Fed and some of which he obtained from from a former NY Fed colleague, in his work on the bank. To resolve the matter, Goldman has agreed to pay $50 million and accept a three-year "voluntary abstention" from accepting new consulting engagements of NYDFS regulated entities. Goldman also agreed to admit that a former employee engaged in the criminal theft of confidential information and that Goldman management "failed to effectively supervise its employee to prevent this theft from occurring," NYDFS said. In September 2014, for example, Bansal attended the birthday dinner of a former Fed colleague at Peter Luger's. Immediately after the dinner, Bansal emailed his boss at Goldman "divulging confidential information concerning the regulated entity, specifically, the relevant component of the upcoming examination rating," NYDFS said.
A former Goldman Sachs banker suspected of taking confidential documents from a source inside the government has agreed to plead guilty, a rare criminal action on Wall Street, where Goldman itself is facing an array of regulatory penalties over the leak. The banker and his source, who at the time of the leak was an employee at the Federal Reserve Bank of New York, one of Goldman’s regulators, will accept a plea deal from federal prosecutors that could send them to prison for up to a year. Under a tentative deal ... Goldman would pay a fine of $50 million. For Goldman and the New York Fed, the case is likely to give new life to an embarrassing episode that illustrated the blurred lines between their institutions. Perhaps more than any other bank, Goldman swaps employees with the government, earning it the nickname “Government Sachs.” While the so-called revolving door is common on Wall Street, the investigation [affirms] the public’s concerns that regulators and bankers, when intermingled, occasionally form unholy alliances. The Goldman banker, Rohit Bansal, previously spent seven years as a regulator at the New York Fed.
Twenty of the world's biggest banks have paid more than $235 billion in fines and compensation in the last seven years for a litany of misdeeds. The scale of the payouts, equivalent to the annual economy of Greece or Portugal, has hampered banks' efforts to rebuild capital, reduced dividends for investors and cut the amount firms are able to lend. The misconduct bill is expected to rise by tens of billions more dollars, and many politicians, regulators and industry observers said more needs to be done. Mark Taylor, dean of the business school at the University of Warwick in central England [says] bonuses are too high, there is little threat of jail for wrongdoers and bosses are not held responsible. "The problem is the incentives for cheating markets is massive. If you can shift a rate fractionally you can make millions and millions of dollars for your bank and then for bonuses. "Once senior executives feel they are personally at risk if the culture doesn't change, and individual traders feel they are at risk of being put in prison, then you'll get a culture change," he said. Despite the scale of fines and compensation paid by banks, relatively few individuals have been punished. Data compiled by Reuters ... showed U.S. banks have paid $140 billion in litigation and compensation for mortgage related issues since 2008. Bank of America has paid out twice as much as any other bank in settlements and compensation, with a bill of almost $80 billion.
Note: Big bank settlements often amount to "cash for secrecy" deals that are ultimately profitable for banks. For more along these lines, see concise summaries of deeply revealing news articles about corruption in government and in the financial industry.
Illegal and unethical behaviour on Wall Street and in the City of London isn't just the work of a few bad apples - it's commonplace, according to new research. More than one in five financial services employees in America and the UK have seen their co-workers breaking the law or engaging in misconduct, a survey of more than 1,200 workers has found. Many feel under pressure to break the rules, believing it is a necessary part of getting ahead. Those at the top of the food chain are even more likely to have seen misconduct, with over a third of those earning more than $500,000 a year say they "have witnessed or have first hand knowledge of wrongdoing in the workplace". The University of Notre Dame and law firm Labaton Sucharow, which published the report, said it showed that bankers had failed to improve behaviour, despite billions of dollars in fines, and new regulations threatening jail. "Despite the headline-making consequences of corporate misconduct, our survey reveals that attitudes toward corruption within the industry have not changed for the better," the report's authors said. The researchers ... interviewed 1,223 banking and financial services workers. The research comes the day before five banks are expecting fines worth more than $6bn related to foreign exchange manipulation. Those questioned in the survey were also asked about whistleblowing practices, and 16pc said that corporate policies barred them from reporting illegal activity to authorities.
Note: For more along these lines, see concise summaries of deeply revealing banking corruption news articles from reliable major media sources.
U.S. authorities are investigating major banks over potential manipulation of the precious metals market, the latest development in a series of probes related to major financial benchmarks. HSBC is among at least 10 major banks being investigated by U.S. authorities for possible rigging of the price-setting process for gold, silver, platinum and palladium, The Wall Street Journal reported late Monday. The report said other banks being scrutinized include: Goldman Sachs; JPMorgan Chase; Britain-based Barclays; Swiss banking giants UBS and Credit Suisse; Bank of Nova Scotia; Germany-based Deutsche Bank; France-based Société Générale; and South Africa-based Standard Bank Group. U.S. authorities declined to comment. Goldman Sachs, HSBC, Deutsche Bank and Barclays, HSBC, UBS and Bank of Nova Scotia have been named as defendants in various putative class-action lawsuits in U.S. federal courts over suspected manipulation of precious metals pricing. The complaints contend that bank traders conspired to manipulate the price of metal derivatives in a bid to reap profits on proprietary trades. The new U.S. investigations follow separate bank probes launched earlier over suspected manipulation of the $5.3-billion-a-day foreign exchange currency trading market, along with rigging of the London Interbank Offered Rate (Libor), which is used to set rates on billions of dollars in loans, credit cards and mortgages.
Note: When it comes to international banking, it appears that almost everything is rigged. For more along these lines, see concise summaries of deeply revealing news articles about the systemically corrupt financial industry.
One man's story in particular highlights just about everything that can go wrong when you give evidence against your bosses in America: former Countrywide/Bank of America whistleblower Michael Winston. Two years ago this month, Winston was being celebrated in the news as a hero. He'd blown the whistle on Countrywide Financial, the bent mortgage lender that ... nearly blew up the global economy. Today, Winston [has] spent over a million dollars fighting Countrywide (and the firm that acquired it, Bank of America) in court. At first, that fight proved a good gamble, as a jury granted him a multi-million-dollar award for retaliation and wrongful termination. But after Winston won that case, an appellate judge not only wiped out that jury verdict, but allowed Bank of America to counterattack him. The bank eventually beat him for nearly $98,000 in court costs. That single transaction means a good guy in the crisis drama, Winston, had by the end of 2014 paid a larger individual penalty than virtually every wrongdoer connected with the financial collapse of 2008. When Winston protested his preposterous punishment on the grounds that a trillion-dollar company recouping legal fees from an unemployed whistleblower was unreasonable and unnecessary, a California Superior Court judge denied his argument — get this — on the grounds that Winston failed to prove a disparity in resources between himself and Bank of America! Four years later, we're still waiting for the first criminal conviction against any individual for crisis-era corruption. There's been no significant reform. What we've seen instead is a series of cash deals with the most corrupt companies.
Note: Countrywide bought political influence to more effectively defraud institutional investors and taxpayers. Thanks to Winston, they were caught and proven guilty. But Bank of America purchased Countrywide, and has been paying off officials in secret deals to continue skirting the law without admitting wrongdoing. And Michael Winston now has to pay Bank of America for their trouble.
The middle class can't be saved unless Wall Street is tamed. Yet most presidential aspirants don't want to talk about taming the Street because Wall Street is one of their largest sources of campaign money. Six years ago ... the financial collapse crippled the middle class and poor, consuming the savings of millions of average Americans and causing 23 million to lose their jobs, 9.3 million to lose their health insurance and some 1 million to lose their homes. A repeat performance is not unlikely. Wall Street's biggest banks are much larger now than they were then. Five of them hold about 45 percent of America's banking assets. In 2000, they held 25 percent. Meanwhile, the Street's lobbyists have gotten Congress to repeal a provision of Dodd-Frank curbing excessive speculation by the big banks. The language was drafted by Citigroup and personally pushed by Jamie Dimon, CEO of JPMorgan Chase. It's nice that presidential aspirants are talking about rebuilding America's middle class. But to be credible, the candidates have to [propose] to limit the size of the biggest Wall Street banks, to resurrect the Glass-Steagall Act (which used to separate investment banking from commercial banking), to define insider trading the way most other countries do (using information any reasonable person would know is unavailable to most investors), and to close the revolving door between the Street and the U.S. Treasury. It also means not depending on the Street to finance their campaigns.
The former chief executive of Landsbanki of Iceland was sentenced to prison on Wednesday, the third of the top executives of the country’s three largest banks that the government has successfully prosecuted and jailed for misconduct during the financial crisis. Iceland was one of the countries hardest hit by the financial crisis and was forced to nationalize its three largest lenders in 2008. Mr. Arnason is the third former chief executive of an Icelandic bank to be ordered jailed for misdeeds in the run-up to the nationalization of Landsbanki and two other of the island nation’s biggest lenders. Kaputhing, at one time Iceland’s largest lender, saw its chief executive, Hreidar Mar Sigurdsson, and its chairman, Sigurdur Einarsson, convicted of market manipulation last year. Mr. Sigurdsson was sentenced to five and a half years in prison, while Mr. Einarsson was sentenced to five years in prison. Larus Welding, the former chief executive of Glitnir, the first of the banks to be nationalized, was convicted of fraud in 2012. The Icelandic lenders expanded beyond their borders during the boom years, only to collapse under a mountain of debt as financial conditions worsened in 2008. After the banks were nationalized, Iceland’s government restructured them, purging their management and refusing to bail out foreign bondholders who held tens of billions of dollars of the banks’ debt. A special prosecutor, Olafur Hauksson, was appointed to investigate the actions of bank executives in the run-up to the financial crisis.
Note: So the one nation that jailed its big bankers and let banks go bust is doing very well. Why are so exceedingly few bankers in other countries being jailed for crimes involving trillions of dollars and bankrupting millions of citizens? For more along these lines, see concise summaries of deeply revealing news articles about corruption in government and in the financial industry.
[Alayne] Fleischmann is the central witness in one of the biggest cases of white-collar crime in American history, possessing secrets that JPMorgan Chase CEO Jamie Dimon late last year paid $9 billion ... to keep the public from hearing. In 2006, as a deal manager at the gigantic bank, Fleischmann first witnessed, then tried to stop, what she describes as "massive criminal securities fraud." This past year she watched as Holder's Justice Department struck a series of historic settlement deals with Chase, Citigroup and Bank of America. The root bargain in these deals was cash for secrecy. The idea that Holder had cracked down on Chase was ... fiction. The settlement, says Kelleher, "was ... crafted to bypass the court system. The DOJ and JP-Morgan were trying to avoid disclosure of their dirty deeds." Chase emerged with barely a scratch. The settlement put you, me and every other American taxpayer on the hook. Chase was allowed to treat some $7 billion of the settlement as a tax write-off. The bank's share price soared six percent on news of the settlement. Chase actually made money from the deal. What's more, to defray the cost of this and other fines, Chase last year laid off 7,500 lower-level employees. But no one made out better than [Chase CEO Jamie] Dimon. The board awarded [him] a 74 percent raise. The people who stole all those billions are still in place. And the bank is more untouchable than ever. Mary Jo White and Andrew Ceresny, who represented Chase for some of this case, have since been named to the two top jobs at the SEC.
Note: Read this entire, fascinating article to understand just how corrupt both the banks and our government are. For more along these lines, see these concise summaries of deeply revealing articles about widespread corruption in government and banking and finance. For additional information, see the excellent, reliable resources provided in our Banking Corruption Information Center.
JUDY WOODRUFF: “We should start praying. I wouldn’t be surprised if half of these loans went down” — that’s what a trader at Citigroup wrote in an e-mail in 2007, after reviewing thousands of mortgages bought and sold by the bank. Today, the Justice Department cited those very words as it announced a $7 billion settlement with the bank. The government said Citi committed egregious misconduct in the lead-up to the financial crisis. Of the $7 billion, Citigroup will pay $4 billion to the Justice Department. More than $2.5 billion is set aside for what’s described as consumer relief. Tony West is associate attorney general. And he was the government’s lead negotiator in this case. Lay out for us, what was this egregious conduct and how many people at Citigroup were engaged in it? TONY WEST: Citibank packaged securities, packaged loans, mortgage loans into these securities, which they sold to investors. What they didn’t tell investors was what the actual quality of those loans were. And so you had these mortgage bond deals that had quality that was far less than what Citi was representing to investors that they were. JUDY WOODRUFF: And how many people knew about this, and did the knowledge go all the way to the top? TONY WEST: We know from the evidence that bankers were warned that the quality of the loans that they were packaging into these securities wasn’t what they were telling investors they were, but they ignored those warning signs. They ignored that due diligence. Certainly enough ... bankers knew that we felt that we could demand a very high, in fact, an historically high, penalty from Citibank.
Note: For more on this, see concise summaries of deeply revealing financial corruption news articles from reliable major media sources.
In fall 2009, Secretary Timothy Geithner invited people working on TARP oversight to a meeting. After we had listened to the secretary go on and on about his department’s cheery projections for recovery, I finally interrupted with a question about a new topic. Why, I asked, had Treasury’s response to the flood of foreclosures been so small? The Congressional Oversight Panel had been sharply critical of Treasury’s foreclosure plan. We thought that the program was poorly designed and poorly managed and provided little permanent help, and we worried that it would reach too few people to make any real difference. The secretary ... quickly launched into a general discussion of his approach to dealing with foreclosures, rehashing the plan that the Congressional Oversight Panel had already reviewed. Next, he explained why Treasury’s efforts were perfectly adequate. Then he hit his key point: The banks could manage only so many foreclosures at a time, and Treasury wanted to slow down the pace so the banks wouldn’t be overwhelmed. And this was where the new foreclosure program came in: It was just big enough to “foam the runway” for them. There it was: The Treasury foreclosure program was intended to foam the runway to protect against a crash landing by the banks. Millions of people were getting tossed out on the street, but the secretary of the Treasury believed the government’s most important job was to provide a soft landing for the tender fannies of the banks.
Note: Adapted from A Fighting Chance by Elizabeth Warren. For more on the government's collusion with the big banks before, during and after the 2008 financial crisis brought about by fraudulent mortgage sales, see the deeply revealing reports from reliable major media sources available here.
A Canadian who works on Wall Street is emerging in some quarters as a hero for revealing the inner workings of high frequency traders who critics have accused of rigging the stock market and taking investors for billions. Brad Katsuyama now runs IEX – the Investors Exchange – a new Wall Street trading platform he founded. But it was in his former capacity as the head trader in New York for RBC Capital Markets that he caught the attention of popular financial writer Michael Lewis. Katsuyama gets star billing in Lewis’s new book, Flash Boys: A Wall Street Revolt. Katsuyama told Lewis that he had uncovered the methods high frequency traders use to get what he considers to be an unfair advantage over other investors. Katsuyama noticed that when he would send a large stock order to the market, it would only be partially filled, and then he would have to pay a higher price for the rest of the order. When he investigated, he found that his orders travelled along fibre-optic lines and hit the closest exchange first, where high frequency traders would use their speed advantage to buy the shares he wanted and then sell them to him at a slightly higher price – all in milliseconds. "They are able to identify your desire to buy shares in Microsoft and buy them in front of you and sell them back to you at a higher price," Lewis told 60 Minutes. “The United States stock market, the most iconic market in global capitalism, is rigged.” The main thrust of Lewis’s new book is that high-frequency traders use their speed advantage in predatory ways that end up cheating market participants small and large.
Note: For more on financial corruption, see the deeply revealing reports from reliable major media sources available here.
In the last two weeks, the New York attorney general and the Commodities Futures Trading Commission in Washington have both launched investigations into high-frequency computerized stock trading that now controls more than half the market. The probes were announced just ahead of a much anticipated book on the subject by best-selling author Michael Lewis called Flash Boys. In it, Lewis argues that the stock market is now rigged to benefit a group of insiders that have made tens of billions of dollars exploiting computerized trading. The story is told through an unlikely cast of characters who figured out what was going on and have devised a plan to correct it. It could have a huge impact on Wall Street. Tonight, Michael Lewis talks about it for the first time. Steve Kroft: What's the headline here? Michael Lewis: Stock market's rigged. The United States stock market, the most iconic market in global capitalism is rigged. Steve Kroft: By whom? Michael Lewis: By a combination of these stock exchanges, the big Wall Street banks and high-frequency traders. Steve Kroft: Who are the victims? Michael Lewis: Everybody who has an investment in the stock market. If it wasn't complicated, it wouldn't be allowed to happen. The complexity disguises what is happening. If it's so complicated you can't understand it, then you can't question it. Steve Kroft: And this is all being done by computers? Michael Lewis: All being done by computers. It's too fast to be done by humans. Humans have been completely removed from the marketplace. The insiders are able to move faster than you.
Note: For an amazing story of greed and manipulation exposed on Wall Street, see the New York Times article on Flash Boys at this link.
It's 1999, the tail end of the Clinton years. Most observers on the Hill thought the Financial Services Modernization Act of 1999 – also known as the Gramm-Leach-Bliley Act – was just the latest and boldest in a long line of deregulatory handouts to Wall Street that had begun in the Reagan years. Wall Street had spent much of that era arguing that America's banks needed to become bigger and badder, in order to compete globally with the German and Japanese-style financial giants. Bank lobbyists were pushing a new law designed to wipe out 60-plus years of bedrock financial regulation. The key was repealing – or "modifying," as bill proponents put it – the famed Glass-Steagall Act separating bankers and broker. Now, commercial banks would be allowed to merge with investment banks and insurance companies, creating financial megafirms potentially far more powerful than had ever existed in America. The [bill] additionally legalized new forms of monopoly, allowing banks to merge with heavy industry. A tiny provision in the bill also permitted commercial banks to delve into any activity that is "complementary to a financial activity and does not pose a substantial risk to the safety or soundness of depository institutions or the financial system generally." Today, banks like Morgan Stanley, JPMorgan Chase and Goldman Sachs own oil tankers, run airports and control huge quantities of coal, natural gas, heating oil, electric power and precious metals. They likewise can now be found exerting direct control over the supply of a whole galaxy of raw materials crucial to world industry and to society in general, including everything from food products to metals like zinc, copper, tin, nickel and ... aluminum.
Note: For more on government collusion with the biggest banks, see the deeply revealing reports from reliable major media sources available here.
Pope Francis's crusade against corruption has made him a target for Italy's all-powerful mafia clans, a leading anti-mob prosecutor has warned. Nicola Gratteri, who has battled Calabria's shadowy 'Ndrangheta mafia, said [that] Francis's attempt to bring transparency to the Vatican was making the white collar mobsters who do business with corrupt prelates "nervous and agitated". He told the Italian daily Il Fatto Quotidiano: "Pope Francis is dismantling centres of economic power in the Vatican. If the bosses could trip him up they wouldn't hesitate. I don't know if organised criminals are in a position to do something, but they are certainly thinking about it. They could be dangerous." Francis, who has called for "a poor church", has backed reform at the Vatican's bank, which has been suspected for years of being a channel for the laundering of mob profits. This week police impounded a luxury hotel on Rome's Janiculum hill – formerly a monastery – which the 'Ndrangheta allegedly purchased from a religious order. "The mafia that invests, that launders money, that therefore has the real power, is the mafia which has got rich for years from its connivance with the church," said Gratteri. "Priests continuously visit the houses of bosses for coffee, which gives the bosses strength and popular legitimacy," he said. A bishop in Locri in Calabria had excommunicated mobsters after they damaged fruit trees owned by the church, he said. "But before that episode, the bosses had killed thousands of people" without being sanctioned, he added.
Note: For more on secret societies, see the deeply revealing reports from reliable major media sources available here.
[Banks] have rigged LIBOR, an interest rate used to peg contracts worth trillions. Its equivalent in the world of derivatives, ISDAfix, has also come under question. Commodities prices from crude oil to platinum have been the subject of allegations and inquiries. Now prices in global currency markets, where turnover is $5 trillion a day, are being scrutinised by authorities, who suspect bankers have tampered with those too. Switzerland’s financial watchdog announced on October 4th that it was investigating a slew of banks it thinks have manipulated currencies. Britain and the European Union also have probes under way. Concerns reportedly centre around abnormal movements ahead of a widely-used daily snapshot of exchange rates, known as the 4pm “London fix”. It represents the average of prices agreed during 60 seconds’ trading, and is used as a reference rate to execute a much larger set of currency deals. Bankers, who are big participants in the market, have huge incentives to nudge the price of a given currency pairing ahead of the fix. With billions of dollars changing hands, a difference of a fraction of a cent can add a tidy sum to the bonus pool. If proven, the charge would amount to banks fleecing their clients. Banks know the big trades they are about to execute on others’ behalf, and are often themselves the counterparty. By moving the markets ahead of the fix, they could alter the rate to their profit and their clients’ loss. One suspected method is “banging the close”: submitting a quick succession of orders just as the benchmark is set, to distort its value.
Note: For more on financial corruption, see the deeply revealing reports from reliable major media sources available here.
Six former Bank of America Corp. employees have alleged that the bank deliberately denied eligible home owners loan modifications and lied to them about the status of their mortgage payments and documents. The bank allegedly used these tactics to shepherd homeowners into foreclosure, as well as in-house loan modifications. Both yielded the bank more profits than the government-sponsored Home Affordable Modification Program, according to documents recently filed as part of a lawsuit in Massachusetts federal court. The former employees, who worked at Bank of America centers throughout the United States, said the bank rewarded customer service representatives who foreclosed on homes with cash bonuses and gift cards to retail stores such as Target Corp and Bed Bath & Beyond Inc. At the same time, the bank punished those who did not make the numbers or objected to its tactics with discipline, including firing. About twice a month, the bank cleaned out its HAMP backlog in an operation called "blitz," where it declined thousands of loan modification requests just because the documents were more than 60 months old, the court documents say. The testimony from the former employees also alleges the bank falsified information it gave the government, saying it had given out HAMP loan modifications when it had not. Borrowers filed the civil case against Bank of America in 2010 and are now seeking class certification.
Note: For deeply revealing reports from reliable major media sources on financial corruption, click here.
[In 2012,] financial speculator Goldman Sachs, the archetypal villain of the global economic meltdown, bailed out by US taxpayers to the tune of $5.5bn ... made an estimated $400m from speculating on food. The World Bank estimated in 2010 that 44 million people were pushed into poverty because of high food prices, and that speculation is one of the main causes. Since Goldman led the drive to deregulate commodity markets in the 1990s ... they've been at the vanguard of creating and promoting complex commodity instruments, from which they've raked in huge profits. Wallace Turbeville, a former vice president and the inventor of commodity index funds, has been outing the company's methods. He says that in his time at Goldman, investment increased from $3bn in 2003 to $260bn in 2008, and commodity prices rose dramatically during the same period, increasing from 2006 to 2008 by an average of 71%. In 1996, speculators held 12% of the positions on the Chicago wheat market, with most of the market being made up of the legitimate users of food – from farmers to producers. But the legitimate hedging element of commodity markets has virtually disappeared in the intervening years. By 2011, pure speculators made up a staggering 61% of the market. Of course, Goldman Sachs isn't the only player, but it is certainly the largest. For several years, it was hotly debated whether speculation in food commodities drives up prices. But the evidence now firmly says it does, and that there's little correlation between rising prices and actual supply and demand. There are now well over 100 studies which agree.
Note: For deeply revealing reports from reliable major media sources on financial corruption, click here.
PBS' Frontline program on [January 22] broadcast a new one-hour report on one of the greatest and most shameful failings of the Obama administration: the lack of even a single arrest or prosecution of any senior Wall Street banker for the systemic fraud that precipitated the 2008 financial crisis: a crisis from which millions of people around the world are still suffering. What this program particularly demonstrated was that the Obama justice department, in particular the Chief of its Criminal Division, Lanny Breuer, never even tried to hold the high-level criminals accountable. What Obama justice officials did instead is exactly what they did in the face of high-level Bush era crimes of torture and warrantless eavesdropping: namely, acted to protect the most powerful factions in the society in the face of overwhelming evidence of serious criminality. Worst of all, Obama justice officials both shielded and feted these Wall Street oligarchs ... as they simultaneously prosecuted and imprisoned powerless Americans for far more trivial transgressions. As Harvard law professor Larry Lessig put it two weeks ago when expressing anger over the DOJ's persecution of Aaron Swartz: "we live in a world where the architects of the financial crisis regularly dine at the White House." As [documented in the] 2011 book on America's two-tiered justice system, With Liberty and Justice for Some: How the Law Is Used to Destroy Equality and Protect the Powerful, the evidence that felonies were committed by Wall Street is overwhelming.
Note: To watch this highly revealing PBS documentary, click here or here. For deeply revealing reports from reliable major media sources on the collusion between government 'regulators' and the financial powers they 'regulate', click here.
It is a dark day for the rule of law. Federal and state authorities have chosen not to indict HSBC, the London-based bank, on charges of vast and prolonged money laundering, for fear that criminal prosecution would topple the bank and, in the process, endanger the financial system. They also have not charged any top HSBC banker in the case, though it boggles the mind that a bank could launder money as HSBC did without anyone in a position of authority making culpable decisions. Clearly, the government has bought into the notion that too big to fail is too big to jail. When prosecutors choose not to prosecute to the full extent of the law in a case as egregious as this, the law itself is diminished. The deterrence that comes from the threat of criminal prosecution is weakened, if not lost. In the HSBC case, prosecutors may want the public to focus on the $1.92 billion settlement. But even large financial settlements are small compared with the size of international major banks. More important, once criminal sanctions are considered off limits, penalties and forfeitures become just another cost of doing business, a risk factor to consider on the road to profits. If banks operating at the center of the global economy cannot be held fully accountable, the solution is to reduce their size by breaking them up and restricting their activities — not shield them and their leaders from prosecution for illegal activities.
Note: For deeply revealing reports from reliable major media sources on government collusion with financial corruption, click here.
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