Abby Martin speaks with Rolling Stone journalist, Matt Taibbi, about a JP Morgan Chase whistleblower that has come forward to expose how the company knowingly sold toxic mortgages to investors and how the Justice Department used her as a pawn in its settlement negotiations with the financial giant.
Tag Archives | Bankers
Liz Pleasant writes at Yes! Magazine:
… Read the rest
Last month PM Press published the Debt Resisters’ Operations Manual —also known as “the DROM.” But don’t let that menacing-sounding acronym fool you: this is a book written in plain English and filled with tips and tactics for dealing with debt.
The book has been available online since September 2012, but this publishing marks the first time the manual has been printed, bound, and sold. Don’t worry, you can still find a free copy online. But, hopefully, getting this book into stores will help its message reach more people—however ironic it might seem to buy one with a credit card.
“Everyone is a debtor so there’s no limit to the audience” said Andrew Ross, a member of the Occupy Wall Street offshoot called Strike Debt, in an interview with Guernica Magazine. Although Ross has gone public, most of the authors of the Debt Resister’s Operations Manual have chosen to remain anonymous.
Will unregulated, debt-based financial products destroy the world? Bloomberg reports that the funneling of capital into instruments of so-called “shadow banking” continues to balloon to unimaginably large proportions:
… Read the rest
The shadow banking industry has grown to about $67 trillion, leading global regulators to seek more oversight of financial transactions that fall outside traditional oversight. The Financial Stability Board, a global financial policy group comprised of regulators and central bankers, found that shadow banking grew by $41 trillion between 2002 and 2011.
The size of the shadow banking system, which includes the activities of money market funds, monoline insurers and off-balance sheet investment vehicles, “can create systemic risks” and “amplify market reactions when market liquidity is scarce,” the FSB said.
Supervisors consider shadow banking activities to be those that allow banks to carry out business off balance sheets, as well as those which allow investors to bypass lenders and the functions they traditionally fulfill on the markets.
Via the Nation, David Graeber on rebellion against indebtedness:
… Read the rest
The rise of [Occupy Wall Street] allowed us to start seeing the system for what it is: an enormous engine of debt extraction. Debt is how the rich extract wealth from the rest of us, at home and abroad. Internally, it has become a matter of manipulating the country’s legal structure to ensure that more and more people fall deeper and deeper into debt.
Financialization, securitization and militarization are all different aspects of the same process. And the endless multiplication, in cities across America, of gleaming bank offices— spotless stores selling nothing while armed security guards stand by—is just the most immediate and visceral symbol for what we, as a nation, have become.
As I write, roughly three out of four Americans are in some form of debt, and a whopping one in seven is being pursued by debt collectors. There’s no way to know just what percentage of the average household’s income is now directly expropriated by the financial services industry in the form of interest payments, fees and penalties…[data] suggests it is somewhere between 15 and 20 percent.
The erudite James Surowiecki brings his journalistic skills to the problem of a banking system that has subsumed the its own watchdogs, in The New Yorker:
… Read the rest
In order to work well, markets need a basic level of trust. As Alan Greenspan said, in 1999, “In virtually all transactions we rely on the word of those with whom we do business.” So what happens to a market in which the most fundamental assumptions turn out to be lies? That is the question in a scandal that has roiled the banking industry all summer. The LIBOR (London Inter-bank Offered Rate) index is the most important set of numbers in the global financial system. Used as a benchmark for interest rates around the world, it’s assembled by asking a panel of big banks to estimate what it would cost them to borrow money today, if they had to. Hundreds of trillions of dollars in derivatives, corporate loans, and mortgages are pegged to these rates.
With clinical psychopaths dramatically overrepresented in finance, one can only assume that mentally healthy workers must learn to imitate psychopathic behavior to remain employed. Via the Huffington Post:
… Read the rest
One out of every 10 Wall Street employees is likely a clinical psychopath, writes the trade publication CFA Magazine. In the general population the rate is closer to one out of every 100.
Journalist Sherree DeCovny pulls together research from several psychologists for her story, which helpfully suggests that financial firms carefully screen out extreme psychopaths in hiring.
A clinical psychopath is bright and charming, writes DeCovny. He lies easily, and may have trouble feeling empathy for other people. He’s more willing to take dangerous risks…the outcomes matter less than the gambles themselves — and the chemical rush of serotonin and endorphins that accompanies them.
This is hardly the first time that mental illness has been equated with a certain capacity for professional success — especially in the financial sector, where some stock traders have actually scored higher than diagnosed psychopaths on tests that measure competitiveness and attraction to risk.
Strauss-Kahn And The Secret Culture Of Aggressive Sexuality In The High Pressure World Of Bankers And Banksters.
My colleague Mike Whitney asks:
“So, what are the chances that Strauss-Kahn will get a fair trial now that he’s been blasted as a serial sex offender in about 3,000 articles and in all the televised news reports?
Do you remember any Wall Street bankers being dragged off in handcuffs when they blew up the financial system and bilked people out of trillions of dollars?”
The answer to both questions is certainly Non, in French or No in English, but there’s more to the connection between Sex and Wall Street. Without commenting on the evidence in this case—which has been asserted, not proven– there is a deeper context that is being ignored.
I call it the “Testosterone Factor” in The Crime of Our Time, my book about how Wall Street criminally engineered the financial crisis.… Read the rest
The US Justice Department has sued Deutsche Bank for more than $1bn (£600m) for defrauding the government. The complaint says Deutsche's MortgageIT subsidiary lied in order to get Federal Housing Administration (FHA) insurance for its loans. FHA rules say lenders must make sure the borrower will be able to repay the loan, but the Justice Department claims Deutsche did not do so. A Deutsche spokesperson described the claims as "unreasonable and unfair". "We intend to defend against the action vigorously," she added. The lawsuit is one of the first targeting mortgage lenders under the federal False Claims Act.