Big Banks Have Become Mafia-Style Criminal Enterprises

Two stories this week prove once again that the big banks are literally criminal enterprises.

Initially, all of the big banks have engaged in Mafia-style “bid-rigging” of municipal bonds, to bilk money from every city in the nation … to the collective tune of tens billions of dollars.

And Barclays and other large banks – including Citigroup, HSBC, J.P. Morgan Chase, Lloyds, UBS, Royal Bank of Scotland – manipulated the world’s primary interest rate (Libor) which virtually every adjustable-rate investment globally is pegged to.


And see this. That means they manipulated a good chunk of the world economy.

Other recent stories also show criminal fraud as well. For example, the big banks have been cheating homeownersespecially veterans.

And as Max Keiser explains, banking giants Mellon and State Street shaved 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.)

Indeed, the entire business model of the big banks is fraud. See this, this, this, this, this and this.

Fraud caused the 1930s Depression and the current financial crisis.

Regulators Have Become “Cops On the Take”

There’s no recovery because the government made it official policy not to prosecute fraud (and see this, this, this, and this).

Unfortunately, the cop is on the take … and the government’s only actions are to cover up the fraud and to leave the people holding the bag.

Category: Legal, Think Tank

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

15 Responses to “Banks Conspire to Fleece the Public”

  1. philipat says:

    And they hardly even bother to deny any longer. It truly is a tragdy that nothing gets changed because this is the way the system works now. The Banks, The Corporatocracy, Congress and the Regulators are all part of the same corrupt fascist system. The bottom line is that the Western Banking system and the major Western “Democracies” first and foremost have a crisis of morality.

  2. Herman Frank says:

    Yes, yes, and yes. All true – “and the emperor is naked”.

    Now that we have concluded that there’s criminal intent, and there’s no-one caring too much about, except the normal “tu-tuh”, the only way out for “the client being fleeced” is to vote with your feet, close your account with the big ones and open up with the local credit-union.

    Simple folks, simple fees, simple profit sharing, simply same deposit insurance – and someone you can brag about being client of.

  3. 873450 says:


  4. DeDude says:

    Each state should have its own “State Government Bank” that goes to the fed and gets free money and then lend it out to municipalities at a low rate.

  5. hammerandtong2001 says:

    The fraud listings cited could be expanded endlessly. MF Global, Student Loans, the disgusting expose re: Mario Draghi formerly of Goldman masterminding the disastrous debt issuance by Greece, and on and on. And many of these frauds have been perpetrated AFTER the collapse of 2008. And that is because it — fraud — is an inherent condition of the system.

    Predatory and criminal financial institutions cannot be restrained without reform and regulatory enforcement. And criminal prosecutions.

    Fraud will continue until the people demand reform, or until it breaks again (as it did in 2008). The cost of not acting is on full view in the western industrialized economies: weak/no GDP growth, crushing unemployment, imposition of “austerity” measures, etc. And as this economic grindstone rolls on, can the hope and dreams of people be sustained and nurtured, so societies remain civil, functioning, vibrant?

    We do not yet know.

    However, it does appear that the course has been charted and that our collective destinies await.


  6. Moss says:

    I hope they get slammed with countless private suits since the Feds do nothing. The people from the towns affected by the muni ripoff should sue them. The lawyers should be jumping all over this . Do it for a % of funds recovered. Where are the lawyers, where are the DA’s? These criminals hide behind the corporate shield and dare society to do something. Fines are simply a cost of doing business to these serial offenders.

    Lets treat them just like people.

  7. rd says:

    It took bringing the country to the brink of revolution in the early 1930s to get the Pecora commission, Glass-Steagal, and FDIC in place which paved the road for the next half-century of prosperity.

    The past 4 years have shown it will probably requrie the same since the system has become so corrupt. Ironically, it is the safety nets that the Right want to destroy which are allowing the system to remain “stable” so that they can continue to rake in the money off the top. Without Social Security, Medicare, unemployment inusrance etc., it would look a lot of like 1932 again and the population would definitely be becoming very restless.

  8. Rick Caird says:

    Wall Street only understands two things: money and punishment. Regulators are always captured by the regulated. So, unless the government actually goes after fraud and manipulation with adequate punishment, expect the same or greater levels of fraud and manipulation.

  9. ilsm says:


    In 1932 the US did not have drones, nor half the world’s arms, nor SWAT, nor military units in police department, nor police intel……………

  10. ZedLoch says:

    But but but Banking Regulation is Socialism! Can’t have that.

  11. [...] help too (perhaps mandatory gladiatorial sentences for financial crimes would help? No more paying £200 million for manipulating a $350 trillion market — fight a lion in the arena instead!), as would incentives to create the infrastructure people [...]

  12. willid3 says:

    Rd, its not just in the last 4 years. try in the last decade?

  13. willid3 says:

    zedloch, correct. and we mustn’t regulate them. because they will create jobs, in some century! in the future! and besides they never do any thing wrong! its always the socialists who get in the way forcing them to do the right thing!

  14. cyaker says:

    Interesting post at Steve Keen’s blog about the Chinese that is also true about the US.

    “Never in history has a government at this scale , been so completely captured by a political class intent on enriching itself, serving not the best interests of the people but their own ends. When and in what form the indolent mob rises up is hard to say. The reality, though, is that the Chinese political class is losing control. Guanxi the essential system of trust that holds the Chinese system together is breaking down, as is the Leninist vanguard system of controlling state affairs through the CCP.  A system of mutual trust and a central party vanguard is impossible to maintain in a Kleptocracy.”

    Craig Tindale is the Vice President of the Centre for Economic Stability, Professor Steve Keen’s non-profit research initiative.