Busted: Bankers and The Global Economy

November 7, 2009

Wall Street Justice Obama Style

corrupt bankers prisonOver and over again, Americans see the same debacle unroll before their eyes, that is, if they are paying any attention. Earlier this year, billions in bonuses were paid to Merrill Lynch executives as the firm was failing. An agreement was made that Bank of America would pick up the pieces of Merrill Lynch with the support of the American taxpayer and later, BofA was bailed out as well. After a dance with the SEC, no wrongdoing was admitted.

After an investigation by the Securities and Exchange Commission, Banking wunderkind JPMorgan agreed to a $722 million settlement. Why? It all rises from a risky derivatives deal that drove Alabama politics to the brink of bankruptcy. As part of the settlement, JPMorgan neither admitted nor denied wrongdoing despite overwhelming evidence that the financial group did actually engage in acute wrongdoing.

What passes for justice on Wall Street? Regulators give a banking institution that they back a fine that taps the corporate bottom line for wrongdoing. The banks are eager to quickly forget the whole thing by paying a modest fine and getting on with business as usual. There is no admission to wrongdoing and business continues. The government gets a fine to pad their already overbloated budgets that the American taxpayer is already floating. We must be stupid because we keep doing the same thing over and over.

No one admits to corruption, much less to making a mistake. Meanwhile, nobody pays back the taxpayer, much less actually pays off a debt of any kind.  Reality is a round robin of funny money, usury and blatant dishonesty. Where is the outrage? Nowhere, because we are too wrapped in our small lives and/or afraid of reprisals or perhaps the boogeyman. Perhaps by our collective refusal to stand up against politicians and bankers, we are admitting that any American would do exactly the same thing; that not one American is any better. What do you say? Probably very little.

June 13, 2009

Financial Racketeering: Send Corrupt Bankers to Prison

bankers to prison
Buy your own t-shirt and tell the world you want justice!

As a protective corporate reaction to the economic and fiscal banking crisis that corrupt bankers have brought upon the nation and the world, bankers have sought to hide the true nature and scope of the toxic assets that they hold. The government has been frustrated in its attempts to truly grasp or know the true situation because of corporate trickery and subterfuge on the part of many banking institutions as bankers often continue to operate their own protection racket. Yet, once bankers have been bailed out by the federal government for their short-sided thinking and the development of corrupt speculative banking instruments, some have sought to pay the debt back with the hopes of continuing the banking gravy train for themselves including unsupervised and virtually unlimited pay perks. From the reaction of the Federal Reserve, accounting standards appear to be lacking as bankers continue the attempt to operate their own private corporate racketeering.

With the expectation of countermanding this continued rebellion by bankers, the Federal Reserve has issued new accounting rules which will have a material effect on banking organizations’ accounting for off-balance sheet vehicles. The legislation will take hold in 2010 to address weaknesses in accounting and disclosure standards for off-balance banking instruments.

The Fed is also reviewing regulatory capital standards for bankers based on their experience in the banking bailout which they expect to apply to banking institutions, further cramping the style of many bankers. As a result of the review of new banking capital standards for bankers, the U.S. government is not eager to immediately accept paybacks of bailout money. The U.S. government apparently believes that the bailout has functioned as a fairly reasonable control lever in temporarily reigning in the ongoing greed within the banking community. ~ E. Manning

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