So you think the big banks do good things for society, like loan money to Main Street, right?
Actually…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 see this)
Since they were bailed out by taxpayers, the big banks have slashed lending … while smaller banks have increased lending. See this, this and this.
According to Thomas Jefferson, “Banking Institutions are more dangerous to our liberties than standing armies”
To prove Jefferson’s point that there is NOTHING you can trust about big banking, the “Too Big To Fail” gang is guilty of:
- Engaged in mafia-style big-rigging fraud against local governments. See this, this and this
- 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 and here
- They pledged 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
- Committed massive fraud in an $800 trillion dollar market which effects everything from mortgages, student loans, small business loans and city financing
- Pushed 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
- Bribed and bullied 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.