Best of the Week
Most Popular
1.Stock Market in DANGER of Strangling the Bears to Death - Nadeem_Walayat
2. Germany Pivoting East, Exit US Dollar, Enter Gold Standard - Jim_Willie_CB
3.Flight MH17 – Kiev Flash Mob's Last False Flag? - Andrew_McKillop
4.Stock Market Crash Nightmare! - Nadeem_Walayat
5.Gold - The Million DOLLAR Question... - Rambus_Chartology
6.Gold And Silver – BRICS And Germany Will Pave The Way - Michael_Noonan
7.The Jewish Selfish Gene, People Chosen by God, Everyone Else is Goyim to Kill - Nadeem_Walayat
8.The Israeli Promised Land Dream - The Criminal Roadmap Towards “Greater Israel”? - Felicity Arbuthnot
9.Which Way is Inflation Blowing? Watch Commodities - Gary_Dorsch
10.U.S. Economy Quarterly Review and Implications for 2014-2015 - Lacy Hunt
Last 5 days
Gold’s Seasonal Sweet Spot - Strongest Months Are August, September, November And January - 1st Aug 14 - GoldCore
Flagrant Rush To War In The Ukraine Crisis - 1st Aug 14
What Russian Sanctions Mean for Your Money - 1st Aug 14
The West's Reckless Rush Towards War with Russia - 1st Aug 14
Gold Price Advance Capped by the Dead Cat Dollar’s Recovery - 1st Aug 14
Big Banks Shift to Lower Gear Banking Operations - 1st Aug 14
Africa: New Land of Investor Opportunity? Pointing to the Positives - 1st Aug 14
Turning a Clinical Eye on Biotech Stocks with High Potential Investor Reward - 1st Aug 14
Gaza Death Cloud Hangs Over Sheffield Eid Festival 2014 at Millhouses Park - 1st Aug 14
Israels Final Solution of Turning Gaza Concentration Camp into a Grave Yard - 31st July 14
US Failure: Unintended Consequence - 31st July 14
Stock Market Breakdown! - 31st July 14
Echoes Of The Great War – Only An Echo In The Elite Mind - 31st July 14
This is Bad News for U.S. Economy and Stock Markets - 31st July 14
The Important Impact of This “Secret” Gold Agreement - 31st July 14
The Something For Nothing Society Death Spiral - 31st July 14
The Social Memory Dump, Shredding Society - 31st July 14
How Safe Are Unallocated Gold Bullion Accounts? - 31st July 14
USDJPY Big Bear Market - 31st July 14
No More School in Gaza Because All the Children are Dead Chant Israel's Jewish Fundementalists - 31st July 14
The Iron Dome Inside The Heads of Israel’s Leaders - 31st July 14
You Know a Politician or Talking Head is Clueless When….. - 31st July 14
Don't Get Married to Your Gold Stocks—It's a Performance-Based Relationship - 31st July 14
Stock Market Parabolic Collapse - Sowing the Seeds of the Next Depression - 30th July 14
How to Profit from the Russia Ukraine Conflict - 30th July 14
Greenspan: U.S. Economy Running Out of Buffer; Stock Market to See Significant Correction - 30th July 14
Rogue States And Loony Tunes - 30th July 14
Anne Elk’s Theory On Brontosauruses - 30th July 14
Our Totalitarian Future - Totalitarianism NOW! - 30th July 14
Stocks Bear Market Formation Revealed - 30th July 14
We Just Found “The Future” - 30th July 14
What the “Steak Bandit” Says About Asset Values - 30th July 14
Designer War By Default - Seven Types of Elite Madness - 30th July 14
Death of the U.S. Dollar? Gold an Inflation Hedge? Really? - 29th July 14
We’re Ready to Profit in the Coming Gold Price Correction—Are You? - 29th July 14
Their Economy Will Collapse, Including Ours - 29th July 14
Silver Prices – Megaphone Patterns - 29th July 14
Real U.S. Interest Rates - Fed Exit a Blue Pill? - 29th July 14
Why Israel Should NOT Exist, Just Like Any Other Rogue State - 29th July 14
Gold Still Looking Good - 29th July 14
Silver Price Set To Star - 29th July 14
Our Population Growth Totalitarian Future - 29th July 14
World War 1 Cause and Consequences - The Planned Destruction of Christendom - 29th July 14
Will Crashing Commodities Crash the Stock Market? - 29th July 14
Ukraine MH17 - Washington Thinks Americans Are Fools - 29th July 14
Stock Market Bubble Warning - 29th July 14
Gold Price and U.S. Dollar’s July Rally - 28th July 14
Second Quarter Corporate Earnings: Marching Toward a Strong Economic Recovery - 28th July 14
Time to Put a New Economic Tool in the Box - 28th July 14
Mossad in Gaza, Ukraine and the Cult Of The All-Powerful Elite - 28th July 14
Elliott Wave Gold Price Projection Since 1970 - 28th July 14
Investors Remain Uncertain As Stock Fluctuate Near Long-Term Highs - Will The Uptrend Extend? - 28th July 14
The Mass Psychology Of Decline - 28th July 14
Will the US Destroy the World? - Don’t Expect to Live Much Longer - 28th July 14
GDM and GDXJ Gold Stocks In-depth Look - 28th July 14
Stock Market One FINAL High? - 28th July 14
What It Means - Paradigm Collapse And Culture Crisis - 27th July 14
Wall Street Shadow Banking: You Can’t Taper a Ponzi Scheme: “Time to Reboot” - 27th July 14
6 Tips for Picking Winning Gold Mining Stocks - 27th July 14
Israel's War on Children, Exterminating the Palestinians Future - 27th July 14
Guilt By Insinuation - How American Propaganda Works - 26th July 14
Surprise Nuclear Attack On Russia To Liberate Ukraine - 26th July 14
Use "Magic" Of Gold/Silver Ratio To Greatly Increase Your Physical Holdings - 26th July 14
Derivatives Market Species Origins - Abuse, Props and Risks - 26th July 14
Stock Market Manipulation and Technical Analysis - 26th July 14
China’s Stock Market Finally Looks Like A Buy - 26th July 14
Ed Milliband Fears Israel Jewish Fundamentalist Gaza War Massacres Backlash - 26th July 14

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

The Biggest lie in Stock Market History Revealed

LIBOR This - HooHa: Finally, A Few Bankers Face Criminal Prosecutions For Conspiracies

Politics / Banksters Dec 22, 2012 - 03:23 PM GMT

By: Danny_Schechter

Politics

New York, New York: When most mainstream media outlets discuss conspiracy theories, it is usually to debunk the views of dissenting and critical thinkers who are routinely denounced as simplistic, paranoid or worse. 

You have frequently seen the mantra questioning their motives and conclusions as if the idea of people or officials acting together covertly to advance their interests in illegal ways is something new in history.


Until recently, US press outlets characterized conspiracy arguments as rants that lacked any factual basis, engaged in guilt by association and stretched the facts.

The only conspiracy charges they tended to look at uncritically were criminal complaints against the Mafia under anti-racketeering statutes like the RICO statutes. Prosecutors loved these cases because normal concerns with  protecting  the rights of defendants didn’t apply when hearsay evidence was permitted.

But now, four years after the financial crisis, prosecutors have finally discovered what critics have been alleging repeatedly:  that big banks were  crooks, engaging, engaging among other illicit practices,  in secretive, illegal and conspiratorial schemes to rig baseline interest rates and manipulate credit markets,

It has now been admitted that traders at two major financial institutions were fixing LIBOR—the London Interbank Offered Rate, used to set the interest rates of $800 trillion worth of financial products, including credit cards and mortgages.

That figure again: $800 trillion!

The banks: Barclays and UBS. At first, regulators got them to agree to pay fines in so-called “settlements,” which are viewed by these institutions as a cost of doing business.

Barclays shelled out $450 million, but UBS went further paying a whopping $1.5 billion fine. They also admitted to fraud and bribery. (Usually banks settle such complaints with out any admission of responsibility).

The Brits took the money, but US prosecutors went further and also lodged criminal charges against two former UBS senior traders for the Libor manipulation. They are the first individuals to be charged in what Reuters called “the wide-ranging investigation that involves more than a dozen big banks.”

(Note: Only two were charged, and neither works for UBS anymore. The Naked Capitalism site scoffed: “"So far, the top echelon of UBS is unaffected by this epic scandal. Until we see executives suffer (and fines are insufficient if they remain wealthy), it’s a no-brainer that this type of behavior will continue, albeit in different businesses and new guises.")

The practices were “absolutely rampant” between 2005 and 20 10, according to the Daily Beast which also noted:

“Both the Barclays and UBS settlements show a combination of systemic corruption—senior officials who did not seem to care about illegal activity going on—and a tight-knit, foulmouth fraternity among the traders themselves. While the Barclays boys talked about buying each other Bollinger, (ie. pricey champagne), the UBS fixers deployed nicknames, profanity, and a total disregard for the fact that their communications with each other might one day be made public. “

The Wall Street Journal couldn’t ignore the story and reported that regulators “alleged” a vast conspiracy, even after the banks admitted to some of what they had done.  Rupert Murdoch couldn’t resist his tabloid training by having two UBS stars quoted in large type on the front page:

•Said a Broker to a Trader: “”Mate your getting bloody good at this Libor game...think of me when yur on your yacht in Monaco won’t yu.”

•Said The Man Called “Trader A:” I need you to keep it as low as possible..if you do that…I’ll pay you, you know, “$50,000, $100,000 dollars.. whatever you want…I’m  a man of my word.”

Notice these violations of banking regulations are always presented as victimless crimes or crimes that only affect investors, never people who lose jobs or homes or how they impact on the economy worldwide,

Most of the coverage does not link all these financial crimes to the larger effect and impact they have had on the world.

Last June, Congresswoman Maxine Waters tried to raise these issues with Ben Bernanke, the Chairman of the Federal Reserve Bank asking him to take action. He retreats into bland and passionless responses. It didn’t seem he was in much of a hurry to anything. (Watch her efforts on You Tube” http://www.youtube.com/watch?v=GJX-0944ass&feature=player_embedded

Months later, other regulators in Britain and the US acted but also in a low-key way.

These prosecutions are highly selective and show a real unwillingness to crack down on bank crimes, even when they involve drug running.

Former NY State Governor Eliot Spitzer, and a former prosecutor who went after Wall Street commented on a refusal to go after the HSBC Bank on these charges, “"The decision to not prosecute in this instance belies everything that the government has ever done with regard to drug prosecutions everywhere.  

“I mean, when you think about the way they behave toward ordinary people who get caught up in drug cases, where they seize all your property and they use absolutely the maximum sentences they can possibly avail themselves of, and in this case they catch a bank that launders billions of dollars for Colombian and Mexican drug cartels … for years on end, and they can’t find something to charge these people with?"

"If the law doesn’t apply equally to everybody, then you don’t really have a system of law.  

It’s not just the banks or governments. The media seems to just be admitting that many banks are run like criminal enterprises.

I and other in the independent media have been making these points for years, as the website Zero Hedge noted:

•Fraud caused the Great Depression and the current financial crisis, and the economy will never recover until fraud is prosecuted

•Criminal fraud is the main business model adopted by the giant banks.

•Largely because they are out-of-control criminal enterprises, economy cannot recover unless the big banks are broken up.

•The Obama administration has made it official policy not to prosecute fraud. Indeed, the "watchdogs" in D.C. are so corrupt that they are as easily bribed as a policeman in a third world banana republic.

•Instead of prosecuting, the government throws money at them

•As Nobel prize-winning economist Joseph Stiglitz noted years ago:

"The system is set so that even if you're caught, the penalty is just a small number relative to what you walk home with. The fine is just a cost of doing business. It's like a parking fine. Sometimes you make a decision to park knowing that you might get a fine because going around the corner to the parking lot takes you too much time."

Slowly, these concerns are working their way into the media but without much of the larger framework presented in a dire global economic report on just how deeply the world economy has been wounded.

The UN reported that it will take until 2017 before jobs come back to pre crisis levels, if they ever do, Global recession could easily deepen given the problems with the US, European and, now, the Chinese economies.

Much of this tracks back to the financial crimes that are just officially being acknowledged. It’s important to remember the warnings of Vanity Fair’s Graydon Carter who, years ago,  referred to the criminal practices of big bankers, when he said: “Never have so few done so much to so many.” 

Also note that none of this “back story” is ever referenced in the reporting on the so-called “fiscal cliff” negotiations. It is rarely mentioned how much of the money owed is in interest due banks. We keep hearing reports about our economic woes without any discussion of what is behind it.

News Dissector Danny Schechters film and book Disinformation. For more information, Http://www.plunderhecrimeofourtime.com.

News Dissector Danny Schechter has made a film and written a book on the “Crime Of Our Time.” (News Dissector.com/plunder.) Comments to dissector@mediachannel.org

© 2012 Copyright Danny Schechter - All Rights Reserved


Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2014 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Free Report - Financial Markets 2014