Are Big Banks Criminal Enterprises?

By: Washingtons_Blog

Here are some recent improprieties by the big banks:

Laundering money for drug cartels. See this, this,this and this (indeed, drug dealers kept the banking system afloat during the depths of the 2008 financial crisis)
Laundering money for terrorists

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
Charging “storage fees” to store gold bullion …without even buying or storing any gold . Andraiding allocated gold accounts
Committing massive and pervasive fraud both when they initiated mortgage loans and when they foreclosed on them (and see this)
Pledging the same mortgage multiple times todifferent buyers. See this, this, this, this andthis. This would be like selling your car, and collecting money from 10 different buyers for the same car
Cheating homeowners by gaming laws meant to protect people from unfair foreclosure
Committing massive fraud in an $800 trillion dollar market which effects everything from mortgages, student loans, small business loans and city financing
Engaging in insider trading of the most important financial information
Pushing investments which they knew were terrible, and then betting against the same investments to make money for themselves. Seethis, this, this, this and this
Engaging in unlawful “frontrunning” to manipulate markets. See this, this, this, this, this and this
Engaging in unlawful “Wash Trades” to manipulate asset prices. See this, this and this
Otherwise manipulating markets. And see this
Participating in various Ponzi schemes. See this,this and this
Charging veterans unlawful mortgage fees
Cooking their books (and see 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 andthis.

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. Instead, they are mainly engaged in financial speculation and derivatives. (and seethis)
The big banks have slashed lending since they were bailed out by taxpayers … while smaller banks have increased lending. See this, this andthis
A huge portion of the banks’ profits comes from taxpayer bailouts. For example, 77% of JP Morgan’s net income comes from taxpayer subsidies
The big banks are literally killing the economy … and waging war on the people of the world
And our democracy and republican form of government as well

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