Image by William Banzai


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.

You Won’t Believe What They’ve Done …

Here are just some of the improprieties by 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
  • Participating in various Ponzi schemes. 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.

Even the bank with the reputation as being the “best managed bank” in the U.S., JP Morgan, has engaged in massive fraud.  For example, the Senate’s Permanent Subcommittee on Investigations released a report today quoting  an examiner at the Office of Comptroller of the Currency – JPMorgan’s regulator – saying he felt the bank had “lied to” and “deceived” the agency over the question of whether the bank had mismarked its books to hide the extent of losses.   And Joshua Rosner – noted bond analyst, and Managing Director at independent research consultancy Graham Fisher & Co – notes that JP Morgan had many similar anti money laundering laws violations as HSBC, failed to segregate accounts a la MF Global, and paid almost 12% of its 2009-12 net income on regulatory and legal settlements.

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


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

We can almost understand why Thomas Jefferson warned:

And I sincerely believe, with you, that banking establishments are more dangerous than standing armies ….

John Adams said:

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:

The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks.

No wonder a stunning list of prominent economists, financial experts and bankers say we need to break up the big banks.

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.

7 Responses to “Jaw-Dropping Crimes of the Big Banks”

  1. says:

    An impending crime of the banks includes the eviction of Mark Harris in Atlanta, GA.

    Here some recent updates on that:
    Supporters join Mark Harris at Fannie Mae to demand justice | Occupy Our Homes ATL

    Project C » ‘Give me a chance to stay in my home. I can pay my mortgage!’: Occupy Atlanta protests Fannie Mae to halt veterans eviction

    No More Homeless Veterans! Stand With Mark Harris! | Occupy Our Homes ATL

  2. bengarbe says:

    Define “break up”. I think the answer is separate banking from investment banking again a la Glass Steagall. Simply splitting them into smaller entities seems silly without restricting their actions to “banking”.

    Interest rates have to go back up as well so that there’s incentive to invest in main street again rather than simply “investing” in the Bernanke scam.

    BTW I mostly quit reading your blog in 2009 because Zero Hedge figured all this out back then and you dragged your feet. Welcome back to sanity.

  3. [...] Do you harbor any doubts that the giant banks are anything less than ruthlessly efficient criminal enterprises? [...]

  4. James Shannon says:

    This article is the best ever! Every American voter needs to read what drives money!
    The observed reality is beyond criminal! The failure to reign in the corruption is truly disgusting!

  5. Glen says:

    Unfortunately, if I show this list to many of my friends, they think I’m a conspiracy nut job. It seems that many people cannot wrap their minds around the fact that the banks were in 2008, the cause of the world collapse, and continue to immensely damage the world economy.

    The banks are the real terrorists. Breaking up the banks is required to recover the world economy.

  6. nypoet22 says:

    outstanding and well-researched post. barry, i sincerely wish this article and others like it were cross-posted to every news aggregator out there (huffpo, drudge, politico, etc.). have you considered and rejected doing so?

  7. [...] Jaw-Dropping Crimes of the Big Banks [...]