Busted: Bankers and The Global Economy

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

February 1, 2008

Make Bankers Pay?

Imagine a world that wasn’t threatened by greedy bankers and financial institutions. Imagine a world where financial institutions were actually responsible for what they did and could be held to a standard besides thievery. The repeated occurrences of financial tsunamis is a true indicator that bankers and financial institutions cannot be trusted and shouldn’t be.

brokenbank.jpgThe problem lies in the fact that the finance and banking industry is full of “commissioned salesmen” that have the promise of wealth in front of them every single day if they push more “banking products”. You’ve heard that power corrupts and that absolute power corrupts absolutely. For years, the banking system has been allowed to monitor itself without restraint with the blessing of the current administration. President Bush wanted the “free market” to work and the market certainly has to the embarassment of all. I remember back in 2004 when I heard President Bush glow with pride and confidence in the self-regulation of the finance industry. Remember “Bad Credit? No Problem!” “Zero Percent Down Payment!” just a few years ago? Enter the mortgage broker. Mortgage brokers occupy an unregulated niche of the lending world making a commission for every borrower they refer to a mortgage lender. These brokers became financial drug dealers as they farmed the nation for fresh prospects in a financial meat market.

Then we have world-wise bankers that create investment vehicles out of risky investments to remove the investments from the bank ledgers. Unfortunately, this strategy only conceals the risk for a time. When the money stops flowing, the game is up. Can you imagine having a license to steal and the guarantee that you will be bailed out by the government? There is little incentive for honesty or accountability when you are going to pay for that lack with funding from the Federal Reserve and further increase the national debt.

Wealthy banking chiefs have plundered the country while making millions for themselves as they bend the regulations and laws any way they are able. The fractional reserve that is required for banks is not enough capital to insure liquidity during downturns and reverses in the lending market. The finance industry is no longer interested in the long-term success of any venture, but rather the short-term commissions and profitability. The turnover of employees and managers within the industry virtually insures the worst kind of corruption. The rich commissions made from the “subprime mortgage bubble” have already been made and spent. The banking industry has been caught red-handed once again. What is really being done about it? ~ E. Manning

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