Serpo
2nd August 2012, 02:01 PM
Stunning Crimes of the Big Banks: Worse than Your Wildest Imagination http://www.zerohedge.com/sites/default/files/pictures/picture-7813.jpg (http://www.zerohedge.com/users/george-washington)
Submitted by George Washington (http://www.zerohedge.com/users/george-washington) on 08/01/2012 19:01 -0400
Bank of America (http://www.zerohedge.com/taxonomy_vtn/term/7841)
Bank of America (http://www.zerohedge.com/taxonomy_vtn/term/113)
Insider Trading (http://www.zerohedge.com/taxonomy_vtn/term/10604)
Main Street (http://www.zerohedge.com/taxonomy_vtn/term/11201)
Mortgage Loans (http://www.zerohedge.com/taxonomy_vtn/term/11904)
ratings (http://www.zerohedge.com/taxonomy_vtn/term/12371)
Ratings Agencies (http://www.zerohedge.com/taxonomy_vtn/term/9366)
Preface: Not all banks are criminal enterprises. The wrongdoing of a particular bank cannot be attributed to other banks without proof. But – as documented below – many of the biggest banks have engaged in unimaginably bad behavior.
Here are just some of the improprieties by big banks:
Funding the Nazis (http://www.washingtonsblog.com/2012/07/big-banks-funded-the-nazis-and-launched-a-coup-against-the-president-of-the-united-states.html)
Laundering money for terrorists (http://www.latimes.com/business/money/la-fi-mo-hsbc-senate-20120717,0,3041182.story)
Financing illegal arms deals (http://www.time.com/time/magazine/article/0,9171,157496,00.html), and funding the manufacture of cluster bombs (http://www.google.com/hostednews/afp/article/ALeqM5jPjddCbIuYT3oJ9x5T0ArxrSIbFw?docId=CNG.93ae3 10642910016fd01326c08ce5822.51) (and see this (http://www.independent.co.uk/news/uk/home-news/uk-banks-fund-deadly-clusterbomb-industry-2338168.html) and this (http://www.rt.com/news/libya-spain-gaddafi-cluster-bomb/)) and other arms which are banned in most of the world
Launching a coup (http://www.washingtonsblog.com/2012/07/big-banks-funded-the-nazis-and-launched-a-coup-against-the-president-of-the-united-states.html) against the President of the United States
Handling money for rogue military operations (http://www.time.com/time/magazine/article/0,9171,157496,00.html)
Laundering money for drug cartels. See this (http://www.latimes.com/business/money/la-fi-mo-hsbc-senate-20120717,0,3041182.story), this (http://www.guardian.co.uk/world/2011/apr/03/us-bank-mexico-drug-gangs), this (http://www.reuters.com/article/2012/05/03/us-hsbcusa-probes-idUSBRE8420FX20120503) and this (http://articles.latimes.com/2011/nov/27/world/la-fg-mexico-money-laundering-banks-20111128) (indeed, drug dealers kept the banking system afloat (http://www.guardian.co.uk/global/2009/dec/13/drug-money-banks-saved-un-cfief-claims) during the depths of the 2008 financial crisis)
Engaging in mafia-style big-rigging fraud against local governments. See this (http://www.rollingstone.com/politics/news/the-scam-wall-street-learned-from-the-mafia-20120620), this (http://www.rollingstone.com/politics/blogs/taibblog/notes-on-wall-streets-bid-rigging-scandal-20120622) and this (http://www.bloomberg.com/news/2011-11-14/governments-using-swaps-emulate-subprime-victims-of-wall-street.html)
Shaving money off of virtually every pension transaction they handled over the course of decades, stealing collectively billions of dollars from pensions worldwide. Details here (http://www.huffingtonpost.com/2011/12/28/bny-mellon-case_n_1172575.html), here (http://www.nydailynews.com/money/2009/02/21/2009-02-21_bank_of_new_york_mellon_scored_3b_bailou.html), here (http://www.nytimes.com/2011/10/05/business/new-york-state-says-bank-of-new-york-mellon-cheated-pension-funds.html), here (http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/10/6_Madoff_Whistleblower_Tells_KWN_Banks_Stealing_Fr om_Pensions.html), here (http://articles.businessinsider.com/2011-10-07/wall_street/30253397_1_trial-dates-bny-mellon-bank), here (http://online.wsj.com/article/SB10001424052748703652104576122220220538048.html), here (http://blogs.reuters.com/financial-regulatory-forum/2011/02/04/analysis-madoff-whistleblower-tries-new-shield-tactic-in-bank-fraud-suits/), here (http://www.cjr.org/the_audit/wsj_on_harry_markopolos_whistl.php), here (http://online.wsj.com/article/SB10001424052748703960804576120544029594566.html?m od=ITP_pageone_0#articleTabs%3Darticle), here (http://www.bloomberg.com/news/2011-05-12/sec-probes-state-street-foreign-exchange-pricing.html), here (http://www.nytimes.com/2009/10/21/business/21street.html) and here
Artificially suppressing (http://www.washingtonsblog.com/2012/07/gordon-brown-sold-britains-gold-too-cheap-to-bail-out-a-large-american-bank.html) gold prices
Charging “storage fees” to store gold bullion … without even buying or storing any gold (http://uk.reuters.com/article/2007/06/12/morganstanley-suit-idUKN1228014520070612). And raiding allocated gold accounts (http://www.washingtonsblog.com/2012/07/beware-allocated-gold-may-not-really-be-there.html)
Committing massive and pervasive fraud both when they initiated mortgage loans and when they foreclosed on them (http://www.washingtonsblog.com/2010/10/at-the-root-of-the-crisis-we-find-the-largest-financial-swindle-in-world-history-where-counterfeit-mortgages-were-laundered-by-the-banks.html) (and see this (http://www.washingtonsblog.com/2011/12/the-fbi-estimates-that-80-percent-of-all-mortgage-fraud-involves-collaboration-or-collusion-by-industry-insiders.html))
Pledging the same mortgage multiple times to different buyers. See this (http://www.washingtonsblog.com/2010/10/professors-black-and-wray-confirm-that.html), this (http://www.washingtonsblog.com/2010/10/mortgages-were-fraudulently-pledged-to-multiple-buyers-at-the-same-time.html), this (http://www.washingtonsblog.com/2010/10/was-abacus-the-business-model-for-the-entire-mortgage-industry.html), this (http://www.washingtonsblog.com/2010/10/the-fraud-perpetrated-upon-investors-and-insurers-due-to-multiple-pledges-of-collateral-could-be-massive.html) and this (http://www.washingtonsblog.com/2010/10/how-did-the-banks-get-away-with-pledging-mortgages-to-multiple-buyers.html). This would be like selling your car, and collecting money from 10 different buyers for the same car
Cheating homeowners (http://www.reuters.com/article/2012/03/08/bank-of-america-whistleblower-idUSL2E8E804820120308) by gaming laws meant to protect people from unfair foreclosure
Committing massive fraud (http://www.washingtonsblog.com/2012/07/the-biggest-banking-scam-in-world-history.html) in an $800 trillion dollar market which effects everything from mortgages, student loans, small business loans and city financing
Manipulating the hundred trillion dollar derivatives market (http://www.washingtonsblog.com/2012/08/a-cartel-of-big-banks-is-harming-the-world-economy-by-manipulating-derivatives.html)
Engaging in insider trading of the most important financial information (http://www.washingtonsblog.com/2012/07/libor-the-largest-insider-trading-scandal-ever.html)
Pushing investments which they knew were terrible, and then betting against the same investments to make money for themselves. See this (http://www.washingtonsblog.com/2011/07/goldman-bet-against-entire-european-nations-who-were-clients-the-same-way-it-bet-against-its-subprime-mortgage-clients.html), this (http://www.zerohedge.com/article/jp-morgan-sold-investors-mbs-covered-sack-shit-loans-goldman-aig-redux), this (http://www.teribuhl.com/2012/05/12/sec-tells-jp-morgan-enforcement-action-coming-over-bears-mortgage-backed-securities-violations/), this (http://www.sec.gov/news/press/2010/2010-123.htm) and this (http://www.washingtonsblog.com/2011/08/bank-of-america-down-20-today-after-being-sued-by-aig-for-massive-fraud-goldman-jp-morgan-and-deutsche-are-next.html)
Engaging in unlawful “frontrunning (http://en.wikipedia.org/wiki/Front_running)” to manipulate markets. See this (http://www.dailyfinance.com/2009/09/17/exclusive-nobel-winner-joseph-stiglitz-predicts-recessions-end/), this (http://www.zerohedge.com/article/whoa-glitch-hft), this (http://www.washingtonsblog.com/2009/07/corporate-media-spotlights-distortion-of-market-by-high-frequency-trading.html), this (http://www.zerohedge.com/taxonomy_vtn/term/8356), this (http://www.washingtonsblog.com/2009/07/what-is-high-frequency-trading-and-how.html) and this (http://www.globalresearch.ca/index.php?context=va&aid=18809)
Engaging in unlawful “Wash Trades” to manipulate asset prices. See this (http://news.yahoo.com/jpmorgan-fined-wash-trades-oil-gasoline-151048338--sector.html), this (http://www.bloomberg.com/news/2012-04-02/rbc-sued-by-u-s-regulators-over-wash-trades-seeking-tax-benefit.html) and this (http://www.bloomberg.com/news/2012-06-22/wash-trading-by-high-frequency-firms-said-to-face-u-s-scrutiny.html)
Otherwise (http://dealbook.nytimes.com/2012/07/03/jpmorgan-role-in-power-market-comes-under-scrutiny/) manipulating markets. And see this (http://www.washingtonsblog.com/2010/05/will-silver-and-gold-prices-rise-now-that-the-feds-are-launching-criminal-and-civil-investigations-into-manipulation-of-the-silver-market.html)
Participating in various Ponzi schemes. See this (http://dealbook.nytimes.com/2011/02/15/in-prison-madoff-says-banks-had-to-know-of-fraud/), this (http://online.wsj.com/article/BT-CO-20120417-716851.html) and this (http://www.miamiherald.com/2012/02/28/2665114/55-victims-of-ponzi-schemer-rothstein.html)
Charging veterans unlawful mortgage fees (http://www.sfgate.com/business/article/Banks-allegedly-charged-vets-illegal-mortgage-fees-2328659.php)
Helping the richest to illegally hide assets (http://www.washingtonsblog.com/2012/07/why-you-pay-too-much-in-taxes-because-everyone-from-the-ultra-rich-to-illegal-immigrants-pay-nothing.html)
Cooking their books (http://online.wsj.com/article/SB10001424052702304830104575172280848939898.html?m od=WSJ_Markets_MIDDLETopNews) (and see this (http://www.washingtonsblog.com/2010/03/lehman-fraudulently-cooked-its-books-accounting-giant-ernst-young-helped-geithner-and-bernanke-winked-and-slapped-them-on-the-back.html))
Bribing (http://www.washingtonsblog.com/2009/09/credit-rating-agencies-took-bribes-for-higher-ratings.html) and bullying (http://www.zerohedge.com/news/unsealed-documents-expose-morgan-stanley-forcing-rating-agencies-inflate-ratings) ratings agencies to inflate ratings on their risky investments
The executives of the big banks invariably pretend that the hanky-panky was only committed by a couple of low-level rogue employees. But studies show that most of the fraud is committed by management (http://www.guardian.co.uk/business/2012/jul/09/fraud-bosses-206m).
Indeed, one of the world’s top fraud experts – professor of law and economics, and former senior S&L regulator Bill Black – says that most financial fraud is “control fraud”, where the people who own the banks are the ones who implement systemic fraud. See this (http://www.washingtonsblog.com/2010/10/why-did-banks-give-home-loans-to-people-who-they-knew-couldnt-pay.html), this (http://www.washingtonsblog.com/2011/12/the-fbi-estimates-that-80-percent-of-all-mortgage-fraud-involves-collaboration-or-collusion-by-industry-insiders.html) and this (http://www.amazon.com/The-Best-Way-Rob-Bank/dp/0292706383).
But at least the big banks do good things for society, like loaning money to Main Street, right?
Actually:
The big banks no longer do very much traditional banking. Most of their business is from financial speculation. For example, less than 10% of Bank of America’s assets come from traditional banking deposits (http://www.washingtonsblog.com/2010/01/less-than-a-tenth-of-bank-of-americas-assets-comes-from-traditional-banking-deposits.html). Instead, they are mainly engaged in financial speculation and derivatives. (and see this (http://www.washingtonsblog.com/2011/10/do-we-need-banks-or-can-we-cut-out-the-middleman.html))
The big banks have slashed lending since they were bailed out by taxpayers … while smaller banks have increased lending. See this (http://www.bloomberg.com/news/2012-06-26/biggest-u-s-banks-curb-loans-as-regional-firms-fill-gap.html), this (http://www.washingtonsblog.com/2010/04/mega-banks-which-received-bailouts-slashed-lending-more-gave-higher-bonuses-and-reduced-costs-less-than-banks-which-didnt-get-bailed-out.html) and this (http://www.washingtonsblog.com/2011/01/%E2%80%9Cthe-vast-majority-of-this-contraction-of-credit-availability-to-american-industry-has-been-by-the-larger-banks%E2%80%9D.html)
A huge portion (http://www.washingtonsblog.com/2012/03/big-banks-continue-to-suck-at-the-government-teat-with-never-ending-stealth-bailouts.html) of the banks’ profits comes from taxpayer bailouts. For example, 77% of JP Morgan’s net income comes from taxpayer subsidies (http://www.washingtonsblog.com/2012/07/77-of-jp-morgans-net-income-comes-from-government-subsidies.html)
The big banks are literally killing the economy (http://www.washingtonsblog.com/2011/10/the-only-way-to-save-the-economy-break-up-the-giant-insolvent-banks.html) … and waging war on the people of the world (http://www.washingtonsblog.com/2011/07/big-banks-are-waging-warfare-against.html)
And our democracy (http://www.washingtonsblog.com/2010/04/krugman-break-up-the-giant-banks-to-stop-their-domination-of-the-political-process.html) and republican form of government (http://player.vimeo.com/video/44511301) as well
We can almost understand why Thomas Jefferson warned (http://books.google.com/books?id=B6pGAAAAIAAJ&pg=PA277&lpg=PA277&dq=%22And+I+sincerely+believe,+with+you,+that+bank ing+establishments+are+more+dangerous+than+standin g+armies%22&source=bl&ots=aisEJwJkWK&sig=lPrhWxRjRNsZJufIwtNzmkEHCOU&hl=en&sa=X&ei=77sZUKukN-rJiwLEhIHICQ&ved=0CFkQ6AEwBQ#v=onepage&q=%22And%20I%20sincerely%20believe%2C%20with%20you %2C%20that%20banking%20establishments%20are%20more %20dangerous%20than%20standing%20armies%22&f=false):
And I sincerely believe, with you, that banking establishments are more dangerous than standing armies ....
John Adams said (http://www.econ.brown.edu/fac/Ross_Levine/Publication/2011_ChicagoFed_DefenseofWallStreet.pdf):
Banks have done more injury to religion, morality, tranquillity, prosperity, and even wealth of the nation than they have done or ever will do good.
And Lord Acton argued (http://en.wikipedia.org/wiki/John_Dalberg-Acton,_1st_Baron_Acton#Notable_quotations):
The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks.
http://www.zerohedge.com/contributed/2012-08-01/stunning-crimes-big-banks-worse-your-wildest-imagination?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:%20zerohedge/feed%20(zero%20hedge%20-%20on%20a%20long%20enough%20timeline,%20the%20surv ival%20rate%20for%20everyone%20drops%20to%20zero)&utm_content=Google%20Reader (http://www.zerohedge.com/contributed/2012-08-01/stunning-crimes-big-banks-worse-your-wildest-imagination?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:%20zerohedge/feed%20%28zero%20hedge%20-%20on%20a%20long%20enough%20timeline,%20the%20surv ival%20rate%20for%20everyone%20drops%20to%20zero%2 9&utm_content=Google%20Reader)
Submitted by George Washington (http://www.zerohedge.com/users/george-washington) on 08/01/2012 19:01 -0400
Bank of America (http://www.zerohedge.com/taxonomy_vtn/term/7841)
Bank of America (http://www.zerohedge.com/taxonomy_vtn/term/113)
Insider Trading (http://www.zerohedge.com/taxonomy_vtn/term/10604)
Main Street (http://www.zerohedge.com/taxonomy_vtn/term/11201)
Mortgage Loans (http://www.zerohedge.com/taxonomy_vtn/term/11904)
ratings (http://www.zerohedge.com/taxonomy_vtn/term/12371)
Ratings Agencies (http://www.zerohedge.com/taxonomy_vtn/term/9366)
Preface: Not all banks are criminal enterprises. The wrongdoing of a particular bank cannot be attributed to other banks without proof. But – as documented below – many of the biggest banks have engaged in unimaginably bad behavior.
Here are just some of the improprieties by big banks:
Funding the Nazis (http://www.washingtonsblog.com/2012/07/big-banks-funded-the-nazis-and-launched-a-coup-against-the-president-of-the-united-states.html)
Laundering money for terrorists (http://www.latimes.com/business/money/la-fi-mo-hsbc-senate-20120717,0,3041182.story)
Financing illegal arms deals (http://www.time.com/time/magazine/article/0,9171,157496,00.html), and funding the manufacture of cluster bombs (http://www.google.com/hostednews/afp/article/ALeqM5jPjddCbIuYT3oJ9x5T0ArxrSIbFw?docId=CNG.93ae3 10642910016fd01326c08ce5822.51) (and see this (http://www.independent.co.uk/news/uk/home-news/uk-banks-fund-deadly-clusterbomb-industry-2338168.html) and this (http://www.rt.com/news/libya-spain-gaddafi-cluster-bomb/)) and other arms which are banned in most of the world
Launching a coup (http://www.washingtonsblog.com/2012/07/big-banks-funded-the-nazis-and-launched-a-coup-against-the-president-of-the-united-states.html) against the President of the United States
Handling money for rogue military operations (http://www.time.com/time/magazine/article/0,9171,157496,00.html)
Laundering money for drug cartels. See this (http://www.latimes.com/business/money/la-fi-mo-hsbc-senate-20120717,0,3041182.story), this (http://www.guardian.co.uk/world/2011/apr/03/us-bank-mexico-drug-gangs), this (http://www.reuters.com/article/2012/05/03/us-hsbcusa-probes-idUSBRE8420FX20120503) and this (http://articles.latimes.com/2011/nov/27/world/la-fg-mexico-money-laundering-banks-20111128) (indeed, drug dealers kept the banking system afloat (http://www.guardian.co.uk/global/2009/dec/13/drug-money-banks-saved-un-cfief-claims) during the depths of the 2008 financial crisis)
Engaging in mafia-style big-rigging fraud against local governments. See this (http://www.rollingstone.com/politics/news/the-scam-wall-street-learned-from-the-mafia-20120620), this (http://www.rollingstone.com/politics/blogs/taibblog/notes-on-wall-streets-bid-rigging-scandal-20120622) and this (http://www.bloomberg.com/news/2011-11-14/governments-using-swaps-emulate-subprime-victims-of-wall-street.html)
Shaving money off of virtually every pension transaction they handled over the course of decades, stealing collectively billions of dollars from pensions worldwide. Details here (http://www.huffingtonpost.com/2011/12/28/bny-mellon-case_n_1172575.html), here (http://www.nydailynews.com/money/2009/02/21/2009-02-21_bank_of_new_york_mellon_scored_3b_bailou.html), here (http://www.nytimes.com/2011/10/05/business/new-york-state-says-bank-of-new-york-mellon-cheated-pension-funds.html), here (http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/10/6_Madoff_Whistleblower_Tells_KWN_Banks_Stealing_Fr om_Pensions.html), here (http://articles.businessinsider.com/2011-10-07/wall_street/30253397_1_trial-dates-bny-mellon-bank), here (http://online.wsj.com/article/SB10001424052748703652104576122220220538048.html), here (http://blogs.reuters.com/financial-regulatory-forum/2011/02/04/analysis-madoff-whistleblower-tries-new-shield-tactic-in-bank-fraud-suits/), here (http://www.cjr.org/the_audit/wsj_on_harry_markopolos_whistl.php), here (http://online.wsj.com/article/SB10001424052748703960804576120544029594566.html?m od=ITP_pageone_0#articleTabs%3Darticle), here (http://www.bloomberg.com/news/2011-05-12/sec-probes-state-street-foreign-exchange-pricing.html), here (http://www.nytimes.com/2009/10/21/business/21street.html) and here
Artificially suppressing (http://www.washingtonsblog.com/2012/07/gordon-brown-sold-britains-gold-too-cheap-to-bail-out-a-large-american-bank.html) gold prices
Charging “storage fees” to store gold bullion … without even buying or storing any gold (http://uk.reuters.com/article/2007/06/12/morganstanley-suit-idUKN1228014520070612). And raiding allocated gold accounts (http://www.washingtonsblog.com/2012/07/beware-allocated-gold-may-not-really-be-there.html)
Committing massive and pervasive fraud both when they initiated mortgage loans and when they foreclosed on them (http://www.washingtonsblog.com/2010/10/at-the-root-of-the-crisis-we-find-the-largest-financial-swindle-in-world-history-where-counterfeit-mortgages-were-laundered-by-the-banks.html) (and see this (http://www.washingtonsblog.com/2011/12/the-fbi-estimates-that-80-percent-of-all-mortgage-fraud-involves-collaboration-or-collusion-by-industry-insiders.html))
Pledging the same mortgage multiple times to different buyers. See this (http://www.washingtonsblog.com/2010/10/professors-black-and-wray-confirm-that.html), this (http://www.washingtonsblog.com/2010/10/mortgages-were-fraudulently-pledged-to-multiple-buyers-at-the-same-time.html), this (http://www.washingtonsblog.com/2010/10/was-abacus-the-business-model-for-the-entire-mortgage-industry.html), this (http://www.washingtonsblog.com/2010/10/the-fraud-perpetrated-upon-investors-and-insurers-due-to-multiple-pledges-of-collateral-could-be-massive.html) and this (http://www.washingtonsblog.com/2010/10/how-did-the-banks-get-away-with-pledging-mortgages-to-multiple-buyers.html). This would be like selling your car, and collecting money from 10 different buyers for the same car
Cheating homeowners (http://www.reuters.com/article/2012/03/08/bank-of-america-whistleblower-idUSL2E8E804820120308) by gaming laws meant to protect people from unfair foreclosure
Committing massive fraud (http://www.washingtonsblog.com/2012/07/the-biggest-banking-scam-in-world-history.html) in an $800 trillion dollar market which effects everything from mortgages, student loans, small business loans and city financing
Manipulating the hundred trillion dollar derivatives market (http://www.washingtonsblog.com/2012/08/a-cartel-of-big-banks-is-harming-the-world-economy-by-manipulating-derivatives.html)
Engaging in insider trading of the most important financial information (http://www.washingtonsblog.com/2012/07/libor-the-largest-insider-trading-scandal-ever.html)
Pushing investments which they knew were terrible, and then betting against the same investments to make money for themselves. See this (http://www.washingtonsblog.com/2011/07/goldman-bet-against-entire-european-nations-who-were-clients-the-same-way-it-bet-against-its-subprime-mortgage-clients.html), this (http://www.zerohedge.com/article/jp-morgan-sold-investors-mbs-covered-sack-shit-loans-goldman-aig-redux), this (http://www.teribuhl.com/2012/05/12/sec-tells-jp-morgan-enforcement-action-coming-over-bears-mortgage-backed-securities-violations/), this (http://www.sec.gov/news/press/2010/2010-123.htm) and this (http://www.washingtonsblog.com/2011/08/bank-of-america-down-20-today-after-being-sued-by-aig-for-massive-fraud-goldman-jp-morgan-and-deutsche-are-next.html)
Engaging in unlawful “frontrunning (http://en.wikipedia.org/wiki/Front_running)” to manipulate markets. See this (http://www.dailyfinance.com/2009/09/17/exclusive-nobel-winner-joseph-stiglitz-predicts-recessions-end/), this (http://www.zerohedge.com/article/whoa-glitch-hft), this (http://www.washingtonsblog.com/2009/07/corporate-media-spotlights-distortion-of-market-by-high-frequency-trading.html), this (http://www.zerohedge.com/taxonomy_vtn/term/8356), this (http://www.washingtonsblog.com/2009/07/what-is-high-frequency-trading-and-how.html) and this (http://www.globalresearch.ca/index.php?context=va&aid=18809)
Engaging in unlawful “Wash Trades” to manipulate asset prices. See this (http://news.yahoo.com/jpmorgan-fined-wash-trades-oil-gasoline-151048338--sector.html), this (http://www.bloomberg.com/news/2012-04-02/rbc-sued-by-u-s-regulators-over-wash-trades-seeking-tax-benefit.html) and this (http://www.bloomberg.com/news/2012-06-22/wash-trading-by-high-frequency-firms-said-to-face-u-s-scrutiny.html)
Otherwise (http://dealbook.nytimes.com/2012/07/03/jpmorgan-role-in-power-market-comes-under-scrutiny/) manipulating markets. And see this (http://www.washingtonsblog.com/2010/05/will-silver-and-gold-prices-rise-now-that-the-feds-are-launching-criminal-and-civil-investigations-into-manipulation-of-the-silver-market.html)
Participating in various Ponzi schemes. See this (http://dealbook.nytimes.com/2011/02/15/in-prison-madoff-says-banks-had-to-know-of-fraud/), this (http://online.wsj.com/article/BT-CO-20120417-716851.html) and this (http://www.miamiherald.com/2012/02/28/2665114/55-victims-of-ponzi-schemer-rothstein.html)
Charging veterans unlawful mortgage fees (http://www.sfgate.com/business/article/Banks-allegedly-charged-vets-illegal-mortgage-fees-2328659.php)
Helping the richest to illegally hide assets (http://www.washingtonsblog.com/2012/07/why-you-pay-too-much-in-taxes-because-everyone-from-the-ultra-rich-to-illegal-immigrants-pay-nothing.html)
Cooking their books (http://online.wsj.com/article/SB10001424052702304830104575172280848939898.html?m od=WSJ_Markets_MIDDLETopNews) (and see this (http://www.washingtonsblog.com/2010/03/lehman-fraudulently-cooked-its-books-accounting-giant-ernst-young-helped-geithner-and-bernanke-winked-and-slapped-them-on-the-back.html))
Bribing (http://www.washingtonsblog.com/2009/09/credit-rating-agencies-took-bribes-for-higher-ratings.html) and bullying (http://www.zerohedge.com/news/unsealed-documents-expose-morgan-stanley-forcing-rating-agencies-inflate-ratings) ratings agencies to inflate ratings on their risky investments
The executives of the big banks invariably pretend that the hanky-panky was only committed by a couple of low-level rogue employees. But studies show that most of the fraud is committed by management (http://www.guardian.co.uk/business/2012/jul/09/fraud-bosses-206m).
Indeed, one of the world’s top fraud experts – professor of law and economics, and former senior S&L regulator Bill Black – says that most financial fraud is “control fraud”, where the people who own the banks are the ones who implement systemic fraud. See this (http://www.washingtonsblog.com/2010/10/why-did-banks-give-home-loans-to-people-who-they-knew-couldnt-pay.html), this (http://www.washingtonsblog.com/2011/12/the-fbi-estimates-that-80-percent-of-all-mortgage-fraud-involves-collaboration-or-collusion-by-industry-insiders.html) and this (http://www.amazon.com/The-Best-Way-Rob-Bank/dp/0292706383).
But at least the big banks do good things for society, like loaning money to Main Street, right?
Actually:
The big banks no longer do very much traditional banking. Most of their business is from financial speculation. For example, less than 10% of Bank of America’s assets come from traditional banking deposits (http://www.washingtonsblog.com/2010/01/less-than-a-tenth-of-bank-of-americas-assets-comes-from-traditional-banking-deposits.html). Instead, they are mainly engaged in financial speculation and derivatives. (and see this (http://www.washingtonsblog.com/2011/10/do-we-need-banks-or-can-we-cut-out-the-middleman.html))
The big banks have slashed lending since they were bailed out by taxpayers … while smaller banks have increased lending. See this (http://www.bloomberg.com/news/2012-06-26/biggest-u-s-banks-curb-loans-as-regional-firms-fill-gap.html), this (http://www.washingtonsblog.com/2010/04/mega-banks-which-received-bailouts-slashed-lending-more-gave-higher-bonuses-and-reduced-costs-less-than-banks-which-didnt-get-bailed-out.html) and this (http://www.washingtonsblog.com/2011/01/%E2%80%9Cthe-vast-majority-of-this-contraction-of-credit-availability-to-american-industry-has-been-by-the-larger-banks%E2%80%9D.html)
A huge portion (http://www.washingtonsblog.com/2012/03/big-banks-continue-to-suck-at-the-government-teat-with-never-ending-stealth-bailouts.html) of the banks’ profits comes from taxpayer bailouts. For example, 77% of JP Morgan’s net income comes from taxpayer subsidies (http://www.washingtonsblog.com/2012/07/77-of-jp-morgans-net-income-comes-from-government-subsidies.html)
The big banks are literally killing the economy (http://www.washingtonsblog.com/2011/10/the-only-way-to-save-the-economy-break-up-the-giant-insolvent-banks.html) … and waging war on the people of the world (http://www.washingtonsblog.com/2011/07/big-banks-are-waging-warfare-against.html)
And our democracy (http://www.washingtonsblog.com/2010/04/krugman-break-up-the-giant-banks-to-stop-their-domination-of-the-political-process.html) and republican form of government (http://player.vimeo.com/video/44511301) as well
We can almost understand why Thomas Jefferson warned (http://books.google.com/books?id=B6pGAAAAIAAJ&pg=PA277&lpg=PA277&dq=%22And+I+sincerely+believe,+with+you,+that+bank ing+establishments+are+more+dangerous+than+standin g+armies%22&source=bl&ots=aisEJwJkWK&sig=lPrhWxRjRNsZJufIwtNzmkEHCOU&hl=en&sa=X&ei=77sZUKukN-rJiwLEhIHICQ&ved=0CFkQ6AEwBQ#v=onepage&q=%22And%20I%20sincerely%20believe%2C%20with%20you %2C%20that%20banking%20establishments%20are%20more %20dangerous%20than%20standing%20armies%22&f=false):
And I sincerely believe, with you, that banking establishments are more dangerous than standing armies ....
John Adams said (http://www.econ.brown.edu/fac/Ross_Levine/Publication/2011_ChicagoFed_DefenseofWallStreet.pdf):
Banks have done more injury to religion, morality, tranquillity, prosperity, and even wealth of the nation than they have done or ever will do good.
And Lord Acton argued (http://en.wikipedia.org/wiki/John_Dalberg-Acton,_1st_Baron_Acton#Notable_quotations):
The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks.
http://www.zerohedge.com/contributed/2012-08-01/stunning-crimes-big-banks-worse-your-wildest-imagination?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:%20zerohedge/feed%20(zero%20hedge%20-%20on%20a%20long%20enough%20timeline,%20the%20surv ival%20rate%20for%20everyone%20drops%20to%20zero)&utm_content=Google%20Reader (http://www.zerohedge.com/contributed/2012-08-01/stunning-crimes-big-banks-worse-your-wildest-imagination?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:%20zerohedge/feed%20%28zero%20hedge%20-%20on%20a%20long%20enough%20timeline,%20the%20surv ival%20rate%20for%20everyone%20drops%20to%20zero%2 9&utm_content=Google%20Reader)