Thursday, July 19, 2012

77% of JP Morgan net income is from taxpayer subsidies, banks do little actual banking, make money via loopholes and no oversight from DC pals

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"....The big banks are literally killing the economy … and waging war on the people of the world."

7/18/12, "Are Big Banks Criminal Enterprises?" Zero Hedge

"Here are some recent improprieties by the big banks:
  • Engaging in mafia-style big-rigging fraud against local governments. See this, this and this
  • 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, here, here, here, here, here, here, here, here, here, here and here
  • Pledging the same mortgage multiple times to different buyers. See this, this, this, this and this. This would be like selling your car, and collecting money from 10 different buyers for the same car
  • Committing massive fraud in an $800 trillion dollar market which effects everything from mortgages, student loans, small business loans and city financing
  • Pushing investments which they knew were terrible, and then betting against the same investments to make money for themselves. See this, this, this, this and this
  • Engaging in unlawful “Wash Trades” to manipulate asset prices. See this, this and this
  • Bribing and bullying 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.

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, this and this.

But at least the big banks do good things for society, like loaning money to Main Street, right?

Actually:

  • The big banks have slashed lending since they were bailed out by taxpayers while smaller banks have increased lending. See this, this and this

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Politicians, local and fed, look the other way:

7/16/12, "HSBC Helped Terrorists, Iran, Mexican Drug Cartels Launder Money, Senate Report Says," Forbes, Fontevecchia

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7/16/12, "Senate report: HSBC 'allowed drug money laundering'," BBC

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7/17/12, "HSBC Has Not Been Fined For Money Laundering," Forbes, T. Worstall

"Nor has it been fined for allowing terrorist financing or drug trafficking."...



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