Why the Financial Industry is so Corrupt

Discussion in 'Economy' started by JimBowie1958, Jul 21, 2012.

  1. JimBowie1958
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    JimBowie1958 Old Fogey

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    Not saying it is all due to this one incident, but this illustrates the nepotistic corruption and conflict of interest that riddles Wall Street which is little more than agreat big Ponzi these days run by HFT algos and Treasury credit bearing Big Bankers.

    Revealed: JPMorgan Paid $190,000 Annually to Spouse of Bank's Top Regulator | | AlterNet

     
  2. georgephillip
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    georgephillip Gold Member Supporting Member

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    Much of the systemic corruption in the Financial industry can be summed up in five letters: L-I-B-O-R.

    This recent example of systemic fraud reveals how corrupt insiders have been able to manipulate the basic measurement--the interest rate--on $800 trillion per day of credit related transactions. Barclays, the British financial giant, has admitted to manipulating the rate from 2005 to at least 2009.

    Some of the largest US banks are currently under investigation for similar fixing.

    Elizabeth Warren:

    "It is also clear that many of those who didn’t have a fixer — including consumers, community banks and credit unions — lost money. Barclays padded its bottom line by taking money from everyone else. It won when it shouldn’t have won — and others lost when they shouldn’t have lost..."

    "In most markets, consumers could simply take their business elsewhere once they learned that the scales were rigged. But interest rates are different.

    "Everyone who borrows money on a mortgage, credit card, student loan, car loan or small-business loan — basically, everyone — is affected by a crooked market on Libor.

    "According to the Federal Reserve Bank of Cleveland, in 2008 more than half of all adjustable-rate mortgages were linked to Libor. Even those who didn’t borrow but saved for retirement or their children’s future got hit with interest rates that had been faked."

    Elizabeth Warren: Libor fraud exposes a rotten financial system - The Washington Post
     
  3. Misaki
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    Misaki Member

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    Last edited: Jul 21, 2012
  4. expat_panama
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    expat_panama Silver Member

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    So what is it, you have something better--
    [​IMG]
    --or we're just talking hatred of of everyone and everything and leaving it at that?
     
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  5. georgephillip
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    georgephillip Gold Member Supporting Member

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    Naomi Wolf agrees:

    "Last fall, I argued that the violent reaction to Occupy and other protests around the world had to do with the 1%ers' fear of the rank and file exposing massive fraud if they ever managed get their hands on the books.

    "At that time, I had no evidence of this motivation beyond the fact that financial system reform and increased transparency were at the top of many protesters' list of demands.

    "But this week presents a sick-making trove of new data that abundantly fills in this hypothesis and confirms this picture.

    "The notion that the entire global financial system is riddled with systemic fraud – and that key players in the gatekeeper roles, both in finance and in government, including regulatory bodies, know it and choose to quietly sustain this reality – is one that would have only recently seemed like the frenzied hypothesis of tinhat-wearers, but this week's headlines make such a conclusion, sadly, inevitable."

    This Global Financial Fraud and Its Gatekeepers | Common Dreams
     
  6. georgephillip
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    georgephillip Gold Member Supporting Member

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    Why don't we start with Geithner and see where it leads?

    "The New York Times business section on 12 July shows multiple exposes of systemic fraud throughout banks: banks colluding with other banks in manipulation of interest rates, regulators aware of systemic fraud, and key government officials (at least one banker who became the most key government official) aware of it and colluding as well."

    This Global Financial Fraud and Its Gatekeepers | Common Dreams
     
  7. EdwardBaiamonte
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    EdwardBaiamonte Gold Member

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    of course if entire economy was built on fraud we should demand more of it since we have the highest standard of living in human history!!

    That said, we would be far far better off still if we had more capitalism and good transparent accounting so for example you could compare banks and financial companies easily and get a simple but accurate understanding of their profitability, size and risk.
     
  8. Moonglow
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    Moonglow Diamond Member

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    Just goes to show how money corrupts.
     
  9. EdwardBaiamonte
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    EdwardBaiamonte Gold Member

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    perfect liberal thought!!!! We'll have the only society in history without money then.... because, after all, money corrupts!!
     
  10. iamwhatiseem
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    iamwhatiseem Gold Member

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    Power corrupts...money is the spoils
     

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