Corporate FatCat’s Beware

Evening Standard Martin Bentham Wednesday 6 January 2016

Fraud chief calls for tougher corporate prosecution laws

Reforms: Serious Fraud Office chief David Green says large businesses with a culture of criminality are “not being brought to justice”

Prosecutors should have US-style powers to punish big business and root out financial crime in the City, the head of the Serious Fraud Office said today.

David Green said legal reforms inspired by the American system of “vicarious liability” would make it easier to hold banks and other large corporations criminally responsible for wrongdoing carried out by their staff.

“My real worry, and why I think the law should be changed, is public confidence,” he said in an interview with the Standard.

“The public look at the perceived American performance against corporates and they understandably think, ‘Why can’t this country do that?’ “The answer is that American prosecutors have far more power than we do.

Over there, if someone is acting criminally in the course of their employment and part of their motive is to benefit the company then anything they do makes the company liable. That’s very easy.

“Here, we have the ‘controlling mind’ test where if you want to convict a company you have to prove that the ‘controlling mind’ — usually the board of directors — was complicit in the criminality.

That is difficult because inevitably the email trail tends to dry up at middle management and evidentially it is hard to prove.

That’s why I suggest ways that it could be changed. It’s a matter of public confidence.”  Mr Green, director of the SFO since 2012, said another option would be to amend the Bribery Act to create a new offence of failing to prevent crime.

His call for reform will fuel the debate over whether ministers have responded adequately to evidence of significant malpractice in the City which emerged following the financial crash of 2008.

Although banks, including Barclays, Deutsche Bank and RBS, have been fined by regulators for market manipulation, none has faced corporate prosecution.

The lack of action has been denounced by politicians, ex-director of public prosecutions Lord Macdonald and others.

Questions about corporate liability were raised again after the recent decision by the Crown Prosecution Service that Rupert Murdoch’s newspaper empire should not be charged over the phone-hacking scandal because there was insufficient evidence to prove a crime under current legislation.

Mr Green said a failed attempt by the SFO to prosecute the Japanese camera giant Olympus, which was dropped after a ruling that companies cannot be held criminally responsible in English law for misleading their auditors, might have ended differently if the reforms he advocated were implemented.

He said: “Supposing there was a practice in the banking or finance industry that was well known and widespread and criminal, then the corporations themselves, if they knew of that practice and allowed it to continue, I don’t see why they shouldn’t be liable for it as well as the individuals who conduct the criminality. The new offence would make the bank tself, or the corporation, liable criminally.”

Reform on US lines would also address the problem that it is easier to prosecute small firms than corporations, he said.

“What is very bad and unfair and illogical is that because of our rules about the controlling mind it’s much easier to get a conviction of a very small company than it is of a huge company.

“That’s because at a small two-man outfit you know who the controlling minds are — those two men — whereas if you come after some enormous bank or vast international corporation then you have the identification problem.

That is the illogicality. They are not being brought to justice.”

Mr Green said tougher prosecution powers would also help protect London’s reputation and money-generating capacity.

He added: “It’s hugely important that the public have confidence in the state agencies’ ability to prosecute the top tier of serious and complex fraud and bribery.

“Not only is it important as a matter of public confidence, it also makes London and the UK a safer place to do business, inspires more confidence and makes us a wealthier country.”

On other issues, the SFO director said that he remained concerned about the ownership of property and other assets by overseas companies from countries such as the British Virgin Islands and Turks and Caicos, in which the owners’ identities were concealed.

He said this facilitated money laundering via the City and London’s property market, adding:‎ “It’s hard to evaluate the size of the problem, but there’s no doubt that large amounts of money are effectively laundered through the City and London property. Proving that is a different matter.

“We would be greatly assisted in that by transparency in corporate structures. The British Overseas Territories for instance: it would be good if they would conform to what we will be doing in transparency of corporate steuctures and beneficial ownership.”

He also vowed to continue pursuing convicted criminals with outstanding confiscation orders and disclosed that the SFO’s recent success in securing its first Deferred Prosecution Agreement – against Standard Bank – had already triggered other companies to come forward to volunteer information about potential criminality.

 

Advertisements

Bank CEO sentenced to jail following £2.4m fraud

http://www.executive-grapevine.com/

Published: Mon, 7 Dec 2015 11:22am GMT

A bank CEO has become one of the first business leaders to face jail-time for her actions during the financial crisis.

Poppi Metaxas is the former CEO of Gateway Bank in California. Last week she was sentenced to 18 months in jail following what she referred to as “a tragic mistake that has devastated my entire life”, Newsday.com reports.

Metaxas had previously pleaded guilty to conspiracy to commit bank fraud. In 2009, Gateway Bank was under pressure from federal regulators to rid itself of bad loans and raise capital. The CEO attempted to solve the issue by arranging a £3.6 million loan (£2.4 million) from a now-defunct mortgage lender. The mortgage lender transferred the money to investors who sent it back to Gateway, purportedly as a down payment to buy toxic loans from the bank, Newsday.com reports.

Metaxas was accused of misleading her Board as well as regulators by not informing them of the “round trip” which didn’t end up saving the bank’s finances after all.

Metaxas’ defence attorney pleaded with the judge for probation, arguing that the actions were caused by a desire to save the bank and not to put money in the former CEO’s own pockets. The defence made the plea on behalf of the 62-year old grandmother who is recovering from ovarian cancer and who is in chronic pain.

The prosecution on the other hand argued that Metaxas’ actions did harm the bank and that she should be sentenced to between two and four years in jail. The bank had £94 million in assets in September. That is a decrease from the £311.6 million assets the bank had in March 2009. The numbers are from the Federal Deposit Insurance Corporation.

The Federal Prosecutor argued that Metaxas had committed the crime in an attempt to “preserve her job, she did it to protect her reputation”.

The judge said that while a prison-sentence may be difficult for the former CEO due to her chronic pain, the judge believed “any sentence less than 18 months would just not reflect the seriousness of this crime.”

John Coffee is a Professor at Columbia Law School. Newsday.com quoted him, saying that no leader of major financial institutions has been sentenced for wrong-doing the financial crisis. However, a few leaders of smaller banks and mortgage brokerages have been incarcerated.

 

The Mother Of All Bailout’s

The One Bank, Revisited – Jeff Nielson

http://www.sprottmoney.com

The One Bank, Revisited - Jeff Nielson

Approximately two years ago; a commentary was published entitled “The One Bank”. The empirical foundation for the article (and the paradigm) was an extensive computer model, produced by a trio of academics at a university in Switzerland, and originally reviewed in an article from Forbes.

The gist of the computer modeling was that a single “super-entity”, by itself, controlled roughly 40% of the global economy. The term “super-entity” is simply a synonym for monopoly. The research further stipulated that ¾ of the 140+ (gigantic) corporate fronts which comprised this mega-monopoly were financial intermediaries (i.e. banks), hence the title, The One Bank.

The research names “names”. Goldman Sachs, JPMorgan, Bank of America, Morgan Stanley, Citigroup, Deutsche Bank, Barclays, Credit Suisse, UBS, Merrill Lynch, Bear Stearns, and Lehman Brothers are among the Big Banks listed as being tentacles of this enormous, financial crime syndicate. Note that the latter names on that list are deceased, (supposed) “casualties” of the Crash of ’08. But with all of these financial tentacles part of a single whole; this proves that the bail-outs which came after that event, and even the crash itself were pure fraud.

All of these financial losses were internal: one tentacle of the crime syndicate (supposedly) “losing money” to another tentacle of the same entity, meaning they were just phony, paper-losses which never really existed. The tentacle on the receiving end of the “losses” was enriched by that amount, meanwhile the tentacle on the losing end was indemnified via (fraudulent) taxpayer-funded “bail-outs”. Heads I win; tails you lose.

The rationale behind these fraudulent bail-outs is that they were to “protect the financial system from collapse.” However, with “the financial system” being little more than the One Bank, itself, and all of its supposed losses being internal; there was never any threat to the system. There was no financial rationale for even one cent of the fraudulent $trillions in “bail-outs” (while these same, corrupt governments radically cut funding for programs which helped/served the People).

With there being no real “losses”, and absolutely no “threat”; there was never any need or justification for the sudden, abrupt, and coordinated suspension of all credit, from these same Big Bank tentacles. It is well-documented that it was the sudden, coordinated (and total) suspension of all credit – to a global economy ‘addicted’ to such credit – which was the trigger for that painful, global contraction. All fraud. All conspiracy.

Equally, there was/is never the slightest financial justification for dubbing these Big Banks “too big to fail”. Not only is such nonsense entirely antithetical to our (supposed) “capitalist” system, it is simply more fraud: a pledge by our ultra-corrupt governments to permanently indemnify all of the tentacles of this crime syndicate against “losses” which don’t even exist.

In addition to that empirical foundation; we have the blatant/obvious evidence of the same Big Banks being caught committing the same mega-crimes (again and again) – and clearly acting in tandem rather than in competition with each other. Indeed, perpetrating conspiracies like manipulating the LIBOR rate andmanipulating international currencies require that these Big Banks act in collusion.

Beyond that; previous commentaries have laid out the evidentiary foundation for a “Master Program” (computerized trading algorithm), by which this financial crime syndicate can (and does) literally manipulate all of the world’s markets. Further empirical evidence lies in the markets, themselves. The yo-yo like manner in which these markets move up and down, in synchronicity, day after day, month after month is impossible for any legitimate/functional market, let alone all markets, simultaneously.

When you eliminate the impossible, whatever remains, no matter how improbable, must be the answer. So said Sir Arthur Conan Doyle, and it is a tautology which would serve readers well. Markets diverge; it’s what they do. Therefore when, suddenly, all these markets begin to behave like herds of sheep rather than herds of cats; it can only be because some Invisible Hand is exerting direct (and absolute) control over those markets.

This “impossible” (inexplicable?) market behavior began at precisely the same time that so called “HFT trading” (i.e. trading via computer algorithms) literally took over our markets. Then we have the evidence of crime itself: evidence presented that half of all trades at the Chicago Mercantile Exchange are illegal and manipulative: 100 phony/illegal (computerized) trades per second, every hour of every day in which that crime exchange operates.

Manipulation on such a gigantic scale requires the financial clout of an entity much larger than any single, Big Bank. Further evidence has emerged of numerous ways/means by which these trading algorithms can and do manipulate our markets, along with empirical evidence that this computerized manipulation iscoordinated – i.e. perpetrated by a single Invisible Hand, the hand of the One Bank.

Critics may argue that some of the rhetoric of the original article was inappropriate, and/or extreme, such as the paraphrasing of a famous verse from Tolkein’s immortal Lord of the Rings:

One Bank to rule them all,

One Bank to find them,

One Bank to bring them all,

And in the darkness bind them.

Let’s examine that rhetorical assertion, line by line.

One Bank to rule them all… Our so-called “central banks” exist solely to cater to the interests of the Big Banks (i.e. the One Bank), as reflected by their actions, and the results of those actions. This alone strongly implies that these central banks are merely more tentacle of the One Bank.

Additional evidence of this comes via the superb documentary, The Money Masters, which chronicled how several, prominent U.S. politicians were “whacked” by this crime syndicate (Mafia-style), in the early days of the Federal Reserve, when its continued existence was very much in doubt. Clearly, the One Bank was “protecting” its own property: the U.S. printing press.

“Give me control over a nation’s money supply, and I care not who makes the laws.” So said Mayer Amschel Rothschild, more than two hundred years. As noted in the original commentary (and further documented in The Money Masters); he is the most likely suspect as the original patriarch of the One Bank.

What must be further understood is that these central banks have been created above the law, meaning above our governments. These private (or, at best, quasi-public) entities dictate to our governments, not the other way around. We are “ruled”, in very literal terms, by these central banks, with the central banks themselves under the control of the puppet-master, the One Bank.

One Bank to find them… Our fascist governments no longer even attempt to hide the fact that we now live in the “Big Brother” society prophesied by Orwell. Via the computer chips which nearly all of us carry in our cellphones and/or credit cards; virtually any (or all) of us can be “found”, every minute of every day.

One Bank to bring them all… Among the many, despicable consequences of the endless (and imaginary)“War on Terror” is the shredding of constitutional (and human) rights, across practically the entire, corrupt Western bloc. All that needs to happen is for some public official to utter the magic word, “terrorist”, and any one of us can be “brought” (and held indefinitely, without evidence, without charges) within one of the (secret) gulags.

And in the darkness bind them. Back when our governments actually resembled “democracies”, when they adhered to the Rule of Law, and respected our constitutions; they operated in a relatively transparent manner. Now there is only “darkness”, all in the interests of (supposed) “national security” – i.e. the security of our corrupt governments, rather than the security of the People.

As for “binding” us; here the One Bank is unusually direct (and literal) in its modus operandi. How does the One Bank “bind” us? Via its bonds of debt. All of our governments are buried under mountains of debt, far past the point of insolvency. The vast majority of these mountains of debt are owed to (you guessed it) the Big Banks, meaning the One Bank.

Note that these bonds of debt are also (along with the central banks) how the One Bank “rules” us all. Holding all these corrupt, puppet governments in massive, choke-holds of debt; the One Bank now essentially dictates public policy, primarily via its central bank mouthpieces.

All of our so-called leaders have steadfastly and unequivocally vowed that paying the interest on the One Bank’s bonds of debt supercedes all other priorities. To demonstrate their servitude toward this financial crime syndicate; our governments have already engaged in the scorched-earth destruction of social programs built up over generations.

However, they were just getting started. Now these traitorous governments have started tearing-up pension and health-care obligations, which the People worked for decades to earn, and sometimes paid into themselves. But the bonds of debt (and the interest on them) continue to grow larger.

With our public treasuries already (fraudulently) depleted by the Crash of ’08, and all remaining financial resources dedicated to paying interest on these bonds; the banksters are still hungry. So, when this crime syndicate manufactures its next, staged “crash” (almost certainly late this year, or early next year), and its next mountain of imaginary “losses”; it will simply start stealing funds directly out of our accounts.

Known by the despicable (and utterly meaningless) euphemism “bail-in”, this is nothing but the lawless confiscation of private assets, to “cover” financial losses which (as previously explained) don’t even exist. And all this additional corruption has already been rubber-stamped by the West’s traitor governments.

According to one of the fundamental pillars of our entire system of justice; monopolies are illegal, even monopolizing one, tiny sector of our economy, even in only one nation. Indeed, even “oligopolies” – monopolizing a sector via the collusion of a group of large companies – are illegal. Yet our corrupt, servile governments have sunk so low (and failed to adhere to their/our laws) that we now have a single monopoly with a choke-hold on not just one sector of our economies (the financial sector), but 40% of allsectors, nearly half of the global economy.

Big Oil? Big Pharma? The Corporate media? The “defense industry” (i.e. the arms industry)? Big Agriculture? All of these overtly predatory and/or corrupt oligopolies would fit inside this massive empire of crime – with plenty of room to spare.

The One Bank is not simply one (financial) monopoly. It is a crime syndicate composed of a plethora of monopolies, cobbled together, and consolidated by the Old World Order (the real “world order”), over a period of centuries. It is entirely illegal, and entirely rapacious.

StockMarkets Could Be In For A Very Rough Ride

http://www.thepropheticyears.com/

The coming economic crash caused by world debt

By Don Koenig with Jan 2015 update

revolving credit card as a focus for world debt

2015 update – I actually wrote this article in 2000 and I have been updating the debt figures and also inserting new information along the way. It it is now 2015. What I said would be coming has been underway, but world governments have taken unforeseen and illegal actions to push off the inevitable world debt crash. In fact, the whole world is now monetizing their debt to keep the world from going into deflationary depression. This will make it impossible for most nations to ever pay off their debt. When the inevitable debt crash happens it will now bring down the whole world economic system. Basically, that means that anyone that does not have tangible secure assets will lose most of their wealth and there will be little possibility for any national government to bail their citizens out.

Since this article is still read by thousands each month, I think I owe my readers updates from time to time. The original article has not changed much except for some dates and figures and a few  inserted comments that were obviously added. The original article follows this update.

The first thing I want to say is that if you are in the stock market right now, it might be wise to get out now, or you are likely to lose your savings again like so many did in the crash of 2008. The numbers may drop as far or worse than the last crash and the value of stocks adjusted for inflation are likely to be far worse.

Do market conditions in the world justify the present stock market? I think not. It has nothing to do with any recovery. It is just more gambling on an expanding bubble. The EU nations are in the longest recession or stagflation since the world wars and they have the highest unemployment in over one-hundred years. there is no end in sight. Japan is in deep recession and has not had any growth in almost two decades. Greece has 30 percent unemployment and no way to pay the interest on their debt and other nations are not far behind. Austerity measures are not working. Riots are inevitable. Fascism is now rising in many EU nations.

Japan had the highest savings rate and also has the worst national debt burden is the world. The population is rapidly aging so now the elderly will tap into savings and banks will fail or buy-in’s will rob savers to bail-out the banks like what happened in Cyprus. Japan has not seen any growth in nearly two decades and it is recession once again. The leaders of Japan think the solution is to aggressively print new money. That is not working. That will just destroy the value of the Yen and it could start a currency race to the bottom with reserve banks of other nations that will do likewise in order to protect their exports and jobs.

The expansion in China is in trouble. They are very near a debt crises. They are way overbuilt and that overbuilding was done by those borrowing from shadow banks. The unemployed of the world cannot afford to keep buying their goods. Nations know they need to protect their own jobs or there will be great social unrest. Therefore, there is great pressure to do something about the cheap exports coming from China. This over building by China is built on borrowing and that is likely to put them into crisis when builders cannot borrow more money anymore to keep the job’s expansion going. China does not have social welfare safety net programs like the West. China needs to keep the people in the cities employed or there will be riots and social breakdown.

Argentina has hyperinflation, and once again it is on its way to default, but who in the world wants to bail them out again?

Now that the oil bubble has burst, nations dependent on oil sales are going to face great economic problems at home.

In the U.S. we cannot keep living like we have twice the income that we really have. Just trying to throw more money at the problem like our government has been doing will just make matters worse in the long run because this nation cannot afford to take on more debt. Passing the costs to some future generation is simply not possible. No future generation can possibly pay our huge rapidly increasing debt and soon nobody will be stupid enough to continue to finance our increasingly risky debt at the abnormally low interest rates that came about by illegal actions of the Federal Reserve. The Federal Reserve Bank created 4 trillions dollars to buy most of our new recent national debt and mortgage debt with money that they created and that nobody will buy in the future. It is a Ponzi scheme. Our national debt will double in just the time Obama was in office.

The more there is a risk of a default or of a currency devaluation Interest rates are going to rise. We may be able to pay $20 trillion dollars of debt at 3 percent interest with some pain but at 6 percent interest or above for any extended period of time it will cause total economic collapse.

There is no easy answer to the world debt problem because many people and nations have been living beyond their means for many decades. They have been amassing debt and entitlements that cannot be sustained and with their aging populations there is no next generation being rasied that will have the numbers or the ability to pay the bills. So now the chickens are coming home to roost. The credit line of many nations are maxed out and the young cannot support the entitlements that the old were promised.

If the spending beyond our means for decades has not been enough, many people in banks are still gambling with your investments. They take your money and use it as security to leverage investments worth thirty to a hundred times that amount. In 2008 some bubbles burst and many that were gambling lost. Some financial institutions got bailed but most did not learn their lesson. It is even worse today then it was in 2008. The world banksters are still gambling with savers money.

Some big corporations and financial institutions could not pay their debts because of the severe downturn in 2008. So they either went bankrupt or were declared too-big-to-fail by our government and the government bailed them out by American’s taking on more future debt.

Things got so bad that since 2008 most banks will not lend anymore on commercial ventures, instead they are either still gambling on markets or they are sitting on their money. Nobody wants to lend for economic development because they are afraid that they will never get paid back. Many others businesses that could expand will not because they are afraid of higher costs in the future through government taxation and regulation. That is one reason people are dropping out of the workforce. There are less businesses in America in 2015 than there were before the 2008 crash.

Another reason for the lack of quality jobs is that the government cannot institute a policy to buy American or they risk a trade war with other nations in the global economy that are also living beyond their means. The trade war probably is coming anyway because unemployed people of nations will demand that their government do something to protect their jobs and all government can do to keep jobs at home is to allow protectionism.

That happened in the 1930’s and it made a bad recession into a long world depression. That now seems to be our future and along with the deflation depression or hyperinflationary depression that is bound to come, it will allow the rise of populist demigods who will convince people that they know who is to blame and that they have all the answers. In other words, we are now repeating the same mistakes of the 30’s that led to the nationalist socialistic movements and the start of World War II. It will not be different this time except the stakes for the world will be much higher.

The same mistakes in housing in the US are being made all over again. I do not think this is a good time to invest in residential real estate unless you plan to actually live in the house. The recent climb in values will probably be short lived as this country goes back into the next phase of this depression. Foreign investment speculators who think we are in recovery are once again buying real estate and driving up prices. The percent of Americans owning their own home is actually still falling and have fallen to 1990’s home ownership levels. Family income in the United States and hours worked is still falling. The recovery is mostly phony and what recovery there seems to be is really built on the Federal Reserve creating more money and more government borrowing. The recovery is going to speculators in the top one percent. The rich are getting richer and the poor are getting poorer.


If I have a sure message to people who are listening, it is this –
Learn to live on an income that is less than half of what you were living on in your good times. Within the decade your income will be far less and/or it will buy far less goods and services. Also prepare for big government trying to manage and run every aspect of people’s lives. Certain people are going to think the only way to handle this is through forced government control and then rationing. Do not be surprised if there is civil breakdown and even Balkanization’s when the people get fed up. It has already started in some nations. It is going to get much worse than most anyone imagines.

Try to network with mature astute conservative Christians who understand these issues. It is going to be a tough time for everyone and those who stand alone will have little support. More spending beyond our means is not going to solve a problem that was caused by spending beyond our means. It will only make things worse in the future. The coming decade for the U.S. and the hard choices it makes will determine if we even survive as a nation. God be with you all.

Original article on the coming economic crash caused by world

(Some figures and a few others things have been change through the years)

Almost every nation of the world has such severe debt that just making the interest payments takes a large amount of their financial resources. Much of this world debt is owed to world bankers that then dictate their own economic policy to these countries. These policies do not favor the poor.

The largest economy in the world is the United States. The US government is currently 18+ trillion dollars in debt and I project that to go well over 20 trillion by 2020. Paying the interest on that huge debt in future years will cost as much as what is now spent on national defense (using modern historical interest rates and the cost of defense under normal peace time conditions).

The United States is now by far the biggest debtor nation in the world. For many years we have been importing hundreds of billions more dollars in goods and services than we are exporting each year. In 2005 through 2008 the trade imbalance averaged well over 700 billion dollars per year! Trillions of US dollars are now in the hands of foreign investors who at any time could dump the dollar causing a devaluation of the currency.

During the presidency of Bill Clinton the US government was forecasting surpluses of trillions of dollars based on the stupid assumption that there would not be a downturn in the economy for decades. This foolish assumption was of course proven wrong and deficit spending in 2009 and 2010 will be at least two trillion dollars a year if everything is really counted. The only reason the United States is not yet feeling the pinch of spending beyond its means has been the record low interest rates. The low interest rates were brought about by Federal Reserve manipulation to stimulate the economy but interest rates eventually will have to rise. Soon all who need loans will be making higher payments and the US government will be paying much more to service the national debt.

Debt and unfunded liabilities promised through entitlement programs is now about 125 trillion dollars. This amount of money in non inflationary dollars is impossible to raise! Thus, the US is now technically bankrupt. In order to keep up the facade that the US is solvent for even another decade or two, one or more of the following must happen.

1. Taxes must be raised.

2. Government spending will have to be drastically cut.

3. Deficit spending will dramatically increase.

If taxes are raised, it will kill the economy and the debt load will get worse and not better. Spending will not be drastically cut because these types of cuts would never get through the political system. Therefore, massive deficit spending will take place. The monetary system will be inflated so that this debt can be paid by using a dollar worth only a fraction of what it is today. This means a much weaker dollar in the future and much higher prices for all goods and services imported to the United States (in short it means we should expect high inflation or hyper-Inflation).

The best long term scenario is that the economy will expand for decades and we will partly grow our way out of this debt crunch (like we temporarily did under Ronald Reagan). But, I do not see stability for that length of time as even a remote possibility in this world full of crises. I think it is only a matter of time before another downturn in the economy or an unforeseen world event brings about the collapse of this house of cards.

The catalyst for a crash can come in any number of ways. One likely scenario is that confidence in the US dollar will falter. When this happens interest rates will have to rise dramatically to try to lure foreign investors to re-service our debt. Higher interest rates will then shut down our economy and less tax money will be raised. The debt will still have to be paid at the higher interest rate so the government will print even more money and deficit spending will increase. The dollar will fall in value against other currencies bringing about an inflation spiral in the United States and even more dumping of US dollars for more stable currencies.

Banks and institutions holding today’s unrealistic low interest loans on property will go under, causing a collapse of pension systems and/or a taxpayer bailout that will worsen the deficits even further. Many with adjustable rate mortgages will not be able to make the payments and they will default on their loans. The foreclosed houses will be dumped on the market bringing a collapse in all home values. (Some of that happened in 2008, worse things like bail-in’s will happen in the future.)

The fall of the US economy will have a domino effect and bring about a worldwide depression that will further depress the US economy and bring a full fledged inflationary depression worse than the great depression of the 1930’s. When this happens most companies will go bankrupt and will be nationalized. (Money printing by the federal banks postponed the worst part of depression temporarily.)

(When I first wrote about the coming economic crash caused by debt in the year 2000, I said the stock market was three times higher than it should be. Since then the market has fallen about 50 percent and risen again twice and the third crash will soon be on its way. I think a 50 percent crash is almost a certainty but it probably will go much lower. Don’t expect a fourth recovery this decade. Instead of banks failing like I said, next time, expect buy-ins where the banks rob investors to pay for the banks losses. The precedence was set in Cyprus in 2013 and buy-in’s are now being legislated in many nations).

Paper money is only worth what it can be traded for in real goods and services. The United States record deficit spending is putting cash into the economy but like all who spend beyond their means the bill will come due. Soon investors will lose confidence in paper money and others that hate the US will deliberately cause more pain and the dollar will fall like a rock. The Federal Reserve Bank has been creating money for years to buy our own debt and to keep interest rates artificially low. This will have dire consequences in the future.

Inflationary depression worse than the great depression

Two thirds of the families in the US are now invested in the stock market compared to three percent in the great crash of 1929. When the economic crash comes, retirement accounts, mutual funds and most paper wealth will be wiped out. Most people making a living on the service sector of our economy will be unemployed. Prices on everything made in this country will either deflate or paper money will lose most of its value. The resultant depression will affect everyone and it will be the worst that this nation has ever known.

When the US economy goes down it will take the world economy with it. This economic collapse will cause great civil unrest all over the world, cities will be filled with riots and later with troops. Democracy will be dead and people will look to demigods to solve their problems. When the economy of the West crashes Russia may get ideas to invade the Middle East to seize its riches.

This day will not take some of the elite of the world by surprise. They know that this day is coming (Satan pulls their strings). At the appropriate time, the solution to the crises will be to abolish almost all debt and all savings and to start over with a new world economic system that will set the stage for the end time economic system described in the book of Revelation.

There is little question that the world debt crash is coming. It does not even have to start in the United States (it could begin in Japan, China, Europe or elsewhere). The only question is the timing of this crash. The world debt situation is so bad now, that a deliberate or accidental crash could occur at any time. The world bankers and world leaders have been putting off the inevitable by huge bailouts and extensions of debts but with these bailouts there is loss of sovereignty to world government and world bankers. They will continue in this mode until the house of cards collapses of its own weight, someone pulls a card, or some large scale economic disruption blows this house of cards over.

Students of Bible prophecy know that a new world economic system will be set up under a world government where no one will be able to buy or sell unless they take the “mark of the Beast”. The formerly debt ridden world will embrace this worldwide cash-less monetary system after the crash because a new system will wipe out most debt and all nations will start afresh. This new economic system will promise great prosperity to the world.

Signs of the time

There is unparalleled greed and foolishness happening in the financial markets of today. People have lost their ability to reason. Like gamblers at casinos the day traders believe that they cannot lose. They think the stock market will always go up. When they take a loss they just double up on their bets. At the high roller’s table there are the derivative speculators that are gambling trillions and whole corporations on the wheel of fortune.

We allow government to spend more than it collects and thus defer the bills to our children with little thought to the consequences it will have for them. The scripture says that the love of money is the root of all kinds of evil. Even many Christians have embraced these evils. The number one message preached today in Christian media and in pulpits is “give us money”. God has blessed the United States because of His people but greed will ultimately bring correction.

The massive world debt load argues that borrowers have become enslaved by the lenders and will do their wishes. On a temporal national level this means that debt ridden nations must fall in line with the agenda of the globalist socialist elite or they will find themselves in a depression. In the longer term when Satan is ready for his man to take control of the world, this generation will see a total crash of the old economic system. The solution of the new economic system will eventually bring the 666 mark of the Beast and enslavement.

Derivatives: Global roulette wheel, by Arnaud de Borchgrave

Selected Bible References

The next article is on the seven day creation theory

Back to world current events index

Thepropheticyears | Bible prophecy and end time worldviews

 

Prosecutors after JP Morgan and RBS executives

http://www.executive-grapevine.com/

Published: Wed, 18 Nov 2015 10:48am GMT

Prosecutors are pursuing criminal charges against executives from the Royal Bank of Scotland (RBS) and JP Morgan for alleged illegal activities.

Police are currently investigating the company’s role in selling supposedly flawed mortgage security packages, the Wall Street Journal reports.

Federal agents are scrutinising a £2billion deal that RBS made in 2007. Regarding JP Morgan, the agents are turning their attentions to different residential mortgage deals. Both companies declined to comment on the legal case.

Reuters reported: “People familiar with the probes said officials were trying to determine whether the bankers ignored warnings from associates that they were packing too many weak mortgages into investment offerings and whether they can prove that constituted fraud.”

The case against JP Morgan had been stalled, according to Wall Street Journal. The delay is caused by prosecutors who have been debating whether they had enough evidence to charge individual employees. However, they now appear to have picked up a new lead.

This case could be a landmark in the history of the American legal system, according to the International Business Times.

They reported: “The cases, if filed, could represent the highest-profile prosecutions of Wall Street employees since the financial crisis, the lack of which has incensed Democrats and Republicans alike.”

Osborne Saved Banks From The Dogs, But He Cant Stop The SME’s Seeking Justice

Banking culture inquiry scrapped by regulator FCA as “Osborne pulls dogs off the banks”

The Independent

Hazel Sheffield Thursday 31 December 2015

Labour MP John Mann told the Independent that the decision directly relates to the sacking of Martin Wheatley, former FCA chief executive

In March, the FCA said that it would conduct a review on whether banking culture was changing Getty Images

An inquiry into banking culture has been scrapped by watchdog the Financial Conduct Authority months after it was launched.

In March, the FCA said that it would conduct a review on whether banking culture was changing after a slew of financial scandals dogged the industry, including the rigging of bank lending rates and mis-sold payment protection insurance.

The review was intended to check on whether “culture change programmes” at banks were driving the right behaviour, especially on pay, bonuses and promotions in middle management, and how concerns were reported and acted on.

The FCA said it scrapped the report because a Banking Standards Board has since been set up to look at the culture within banks on an on-going, one-by-one basis.

“A focus on the culture in financial services firms remains a priority for the FCA.  There is currently extensive ongoing work in this area within firms and externally.  We have decided that the best way to support these efforts is to engage individually with firms to encourage their delivery of cultural change as well as supporting the other initiatives outside the FCA,” an FCA spokeman said.

Labour MP John Mann told the Independent that the decision directly relates to the sacking of Martin Wheatley, the former chief executive of the FCA, in July.

Wheatley made it clear in interviews after he stood down that he felt he had “unfinished business” and feared that the conduct of bankers might become “less of priority” as memories of the financial crisis receded.

“This relates directly to the sacking of Wheatley and the opportunity this has given Osborne to pull the dogs off the banks,” Mann said.

He said that Osborne’s motivation for easing off on the banks was related to HSBC’s decision to look at moving its headquarters overseas, as well as the privatisation of Lloyds and RBS.

George Osborne – The Bankers’ Toady!

Jan 1, 2016

Financial Crime Expert Consultant

George Osborne is facing serious accusations of forcing financial regulators to abandon a review into Britain’s banking culture, while under pressure from the banking industry’s biggest names.

The Chancellor is “bowing” to demands to drop the so-called “banker bashing” probe set up after the Libor rate-rigging scandal, it is now being claimed.

The Financial Conduct Authority (FCA) has announced it will instead “engage individually with firms to encourage their delivery of cultural change”.

What a complete load of absolute utter drivel – what a pile of hyper wabble-babble!

“…Engaging… to encourage the delivery of cultural change…”

What on earth does that mean? What kind of weasel-worded, double-speak bollocks is this, and more importantly, wtf believes it?

Banks are operated like Mafia families, they are organised criminal entities, by their very definition. The culture of the banks is entirely criminogenic – they have very strong criminal tendencies and they will purposefully ignore or break any law which gets in the way of their making more and bigger profits.

The truth is that the bankers have got hold of Osborne, (who doesn’t need much persuading) and they have bullied him shamelessly into believing that they would relocate their base of operations elsewhere if the pressure on them to come clean got too strong.

Instead of putting them to their threat, Osborne (who likes bankers and who wants to believe them) has rolled over.

The decision comes after FCA chief executive Martin Wheatley announced, back in July, his decision to quit the post as Mr Osborne refused to renew his contract, which was due to end in March this year. Wheatley was beginning to make his demands heard and understood and he was dishing out some very strong penalties. The banks didn’t like it or him, and they lobbied Osborne to get rid of him.

MPs have already suggested the Chancellor was behind this decision to drop the review, months after it was set up.

Labour’s John Mann, who sits on the Treasury select committee, said : “George Osborne is behind it, without any question.

“The cultural issues are what lay at the heart of the financial crisis. It’s fundamental. Individuals took irrational risks with other people’s money.

Well, yes, but they also stole a whole heap of it as well!

“This decision leaves us hugely exposed into the future because it allows the banks to continue to go on acting as they acted before.”

He added: “George Osborne is bowing to pressure from the banks. HSBC and Barclays have threatened to leave the country.”

Conservative Mark Garnier, who also sits on the committee, said he was                   ” .disappointed…” by the decision.

He told BBC Radio 4’s Today programme: “There has always been this great argument that perhaps the Treasury is having more influence over the regulator than perhaps it ought to and certainly, if I was looking for a Machiavellian plot behind what’s happened here and the tone of the regulator, then I suppose I would start looking at the Treasury.”

Well, let us review the facts, because what is becoming clearer is not just that George Osborne is demonstrating his willingness to support the criminal banks, but is also proving him to be someone who has a difficulty in determining the truth.

Back in February 2013, just when it mattered and in the wake of a major Parliamentary Review which had attracted the attention of the whole world. the Chancellor made a speech to J.P.Morgan, in which he announced that the UK’s big banks would be broken up if they failed to follow new rules to ring-fence risky investment operations from High Street outlets.

He needed some high-flown words to make it seem like he cared about bankig crime and that he was serious about protecting the public, but his threats were never going to happen.

The Chancellor referred to the scandalous conduct of the UK banks in recent years and said that the taxpayers were very angry at banks’ behaviour and would never again be expected to bail them out.

The Chancellor’s speech came on the same day the government introduced its Banking Reform Bill in Parliament.

Mr Osborne also said the banking system was not working for its customers, particularly small businesses and individuals.

The Chancellor appeared then to have accepted a major recommendation of an earlier Parliamentary Commission on Banking Standards which called for a reserve power to “electrify the ring-fence” if banks did not implement reforms.

The Ring-Fence: The High Street activities of each UK bank were to be put into a separate subsidiary from its riskier investment banking.

Well, that was distortion number two. The big banks were not going to sit back and watch their flaky wholesale arms dislocated from their retail cash cows!

Other mis-statements include the requirement for bank directors to accept the responsibility for the actions of their subordinates. Well, that provision recently got pulled as well!

Electrification: Regulators would be given the power to split up an individual bank altogether, subject to certain conditions, if the regulator deemed that bank to be undermining the purpose of the ring-fence. Regulators would also review the entire UK banking industry each year to determine whether the ring-fence was proving effective.

Deposit Guarantees: The Financial Services Compensation Scheme currently guarantees up to £85,000 of every deposit in a UK bank, although this will be reduced to £75,000. Under the bill, if a bank goes bust, the FSCS will be paid out ahead of other people owed money by the bank. It means that the FSCS will be better able to recover the money it has guaranteed, which should reduce the potential bill for taxpayers if there is a shortfall.

Loss Absorbency: The bill gives the Treasury the power to impose tougher requirements on banks to increase their ability to absorb losses, in particular by requiring a bank to borrow money from markets in a form that allows the bank to impose losses on the lenders if it gets into trouble.

The Independent Commission on Banking, led by Sir John Vickers in 2011, had concluded that ring-fencing was the best way to protect “core” retail banking activities from any future investment banking losses.

Osborne said in his speech, at JP Morgan’s administration offices in Bournemouth, that banks had failed to take responsibility for their actions. The 2008 crisis, which marked the start of the credit crunch, saw the government use £65bn of public money propping up Royal Bank of Scotland and Lloyds Banking Group alone.

Osborne also referred to greed and corruption over banks’ rigging of the Libor interest rate, and blamed recklessness by banks’ so-called “casino operations” for dragging the financial system to the brink of collapse. The reputation of banks has been further undermined by scandals such as the fraudulent sale of payment protection insurance and the rigging of the Libor interest rate.

The chairman of the Parliamentary Commission on Banking Standards, Andrew Tyrie, warned the banks could not be trusted: “Banks require discouragement from gaming the rules. They will always try to do so unless strong disincentives are put in place.”

He said once the spotlight had moved away from the banks, they would be likely to try to soften the regime: “At that time, banks could be particularly active in testing the ring-fence and lobbying politicians to alter its design for their benefit. Electrification creates incentives against such behaviour.”

Well, that was then and this is now, and the banks have been assiduously lobbying good old George to get him to relax these important measures. And George has done what the banks have demanded, he has toadied to them shamelessly and has overseen the dropping of any of the proposed measures.

Indeed, all the provisions worth anything and announced in the aftermath of the findings of the Parliamentary Commission on Banking Standards have been dropped or cancelled.

So how can anyone believe a single word George Osborne says?

An enquiry into banking culture was needed more now than at any time, but it is the last thing the banks want to see being publicised.

Putting it as simply as possible, banks exist to reward greed and cupidity. Bankers demand and expect to be paid salaries and bonuses far beyond the dreams of avarice. But paying these ludicrous sums of money does not make the recipients any more worthy, they simply demand even more.

In order to satisfy this level of greed banks have to find other ways of generating revenues and profits, and the only real way in which they can do that is to encourage an exponential level of unmanaged risk taking, and an unspoken acknowledgement that criminal offences will have to be committed in order to raise the profits.

To do that, they employ middle management who are responsible for ensuring the lowest-level workers maintain the through-put of profitability, and who are paid high levels of remuneration. By far the largest percentage of that money is comprised of bonuses achieved from the earnings generated by their direct reports, so each manager has a fixed interest in looking the other way and not asking too many awkward questions about the profits being made by his team members.

Such an atmosphere generates a culture or a climate of ‘anomie’, or an ‘anomic’ environment, within which ordinary rules, norms and behavioural determinants are routinely ignored, and criminality is rewarded.

And when public concern at this culture of criminality becomes too pronounced, then some form of Parliamentary enquiry is announced, where the great and the good pontificate, a lot of hot air is generated, lots of promises are made, and proposals for change are tabled.

Then, when the tumult and the shouting has died, George quietly rolls over when the bankers threaten to take their toys away, and he gives in, allowing them to carry on like before.

George Osborne is presiding over an era where the reputation of the City of London has become degraded and trashed because its importance to international criminals has become greater than the Cayman Islands or any of the offshore, funny money centres.

For some reason, this man seems to feel that any kind of financial skulduggery can be permitted within the Square Mile, and it will not have any shaming or deleterious effect.

There used to be a time where Ministers of the Crown went to great lengths to at least give the impression that they meant what they said, but now, as far as George, the Bankers’ toady is concerned, he will promise to do one thing on one day, but as soon as his friends in the Square Mile start bleating, he will back down.

And all the time, the bankers continue to commit financial crimes.

We simply cannot continue to have a man in charge of the UK economy who behaves in this cavalier fashion.

Osborne is not a stupid man, and he has an army of lawyers to advise him, if he did but want to know. A man who connives in the commission of criminal offences, and who continues to permit such activities to occur, in the full knowledge of what he is doing, is as guilty of the crimes being committed as the person committing them.

He, as Chancellor, is in a unique position of authority and responsibility, and he is aiding and abetting these banking crimes, he is turning a blind eye to the provenance of the criminal money flooding into London; and by his deliberate failure to take positive action to legislate to help to prevent such crimes continuing to occur, is evidencing his complicity in the criminal culture he is facilitating within the banking world.

Labour & Lib Dem Peers Voice Fury

Mirror 13:43, 14 Dec 2015 16:43, 14 Dec 2015  Dan Bloom

The Tories have quietly scrapped a crackdown on fatcat bank bosses

George Osborne

Going easy on the bankers: George Osborne

The Tories have quietly dropped a crackdown on fatcat bosses who preside over reckless behaviour in Britain’s banks.

Labour and Lib Dem peers voiced their fury today after the move was slipped without fanfare into an obscure section of a new banking law.

Lib Dem Baroness Kramer accused “outrageous” George Osborne of “buckling to pressure from his friends in the banks” – and warned it could allow bosses to turn a blind eye to another LIBOR rate-rigging scandal.

The ex-MP told the Mirror: “People are no longer talking about the banks so the Tories think they can go easy on them.

“The government claims the rule will make it hard to hire good people. They’ve obviously been in conversation with the banks to come up with statements like that.”

The law being axed could have found bank chiefs guilty of misconduct even if a watchdog had no proof they broke the rules.

Read more: Former HBOS fatcat bosses could be BANNED from working in the City

The moon rises over Canary wharf at it's closest point to the earth during a Supermoon phase on September 27, 2015

Worry: Regulators will now have to devote extra cash to finding reams of evidence

It said managers should be held to account for all rule-breaking by their employees – and would only escape punishment if they proved they had done all they could to stop it.

But the law, passed by MPs in 2013, is now being repealed just weeks before it was due to come into force in March.

Instead of bank bosses having to prove they did enough to stop rule-breaking, regulators will now have to prove they did not.

That will shift the ‘burden of proof’ from bankers themselves to organisations like the Financial Conduct Authority, making it more expensive to pursue high-salaried bosses.

Baroness Kramer added: “The rule would have forced senior management to lay down a paper trail. But they haven’t even tried it.

“It beggars belief that the government is planning to water down rules to hold top bankers to account.

Read more: Tories quietly ban scheme which offers poor residents a council house for life

Blink and you’ll miss it: The wording of the U-turn in the new Bank of England Bill

“It is as if they have already forgotten about the 2008 crash, Libor fixing or any one of the other scandals that cost the taxpayer billions.

“Senior managers in our banks should not be allowed to wash their hands of failings. Ignorance is not an excuse when our economy and British livelihoods are on the line.”

The U-turn is being moved in the small print of the 60-page Bank of England Bill and will be challenged tomorrow in the House of Lords.

Labour shadow Treasury ministers Lord Tunnicliffe and Lord Davies will join Lib Dem Baroness Kramer to try and stop the change.

Also signing the amendment is former Treasury select committee chairman and Labour peer Lord McFall.

Despite Labour and the Lib Dems outnumbering Tories in the Lords, it is not known yet if the amendment will pass. It s understood Labour Lords whips are still deciding whether to force peers to vote the same way.

A Treasury spokesman said: “The government has taken concerted action to improve conduct across the banking sector and deal with the abuses and unacceptable behaviour of the past.

“We’ve introduced the toughest rules on bankers’ pay of any major financial centre, and hardwired responsibility and accountability into the financial system, with those senior managers responsible for bringing down banks facing up to seven years in prison.

“We are extending the Senior Managers & Certification regime so that tough standards of personal responsibility and accountability apply beyond banking and across the entire financial services industry.

“This will ensure that all financial services firms in Britain operate to the highest standards.”

Whistleblower claims orders given to remove and delete from audit report

The Irish Times Sarah Bardon

Lords could derail Osborne’s plans to soften rules on banker accountability

The Guardian By Simon Bowers and Jill Treanor

Opposition peers proposing to amend Bank of England bill, which would unwind tougher regulation set up by the coalition in 2013

Queen Elizabeth II preparing to give a speech in front of members of the House of Lords

The Conservative party does not have a majority in the House of Lords in the way that it does in the Commons. Photograph: Adrian Dennis/AFP/Getty Images

Labour and Liberal Democrat peers are threatening to block George Osborne’s plans to water down regulatory powers designed to hold top City bankers to account for banking scandals.

Opposition parties want the chancellor to think again about his proposals to unwind tough regulations on banker accountability, introduced by the coalition government only two years ago.

Senior Labour and Lib Dem front bench peers have proposed an amendment to Osborne’s Bank of England bill that would frustrate the chancellor’s plans in a vote on the amendment on Tuesday.

Labour and the Lib Dems are more strongly represented in the Lords than in the House of Commons, but past attempts to use their numbers to block the government in the upper house have also called into question the current political balance among peers.

Opposition parties are understood to have received detailed briefings on Osborne’s latest plans from Bank of England regulators. But one senior Labour source said: “We have not seen anything in [Osborne’s proposals] to suggest they will improve the current legislation.”

Stuart McWilliam, senior campaigner at Global Witness, said opposition parties are right to intervene. “This is a terrible time for the government to water down reforms which would hold senior bankers personally accountable for bad behaviour.

The government should not scrap the vital measures it argued for and passed just two years ago.”

Current rules on banker accountability were beefed up in 2013 by the then coalition government in response to widespread anger that so few bank executives had been held accountable in the wake of the 2008 banking crash, the PPI mis-selling fiasco, and the Libor rigging scandal.

Central to the current regime are tough new regulatory standards for senior managers, proposed initially by the parliamentary commission on banking standards and adopted by Osborne and the then business secretary Vince Cable.

At the time, the two cabinet ministers said the new measures “comprehensively address the problems with standards which have done so much to undermine society’s faith in the banking system.”
The measure included reversing the burden of proof for bank bosses facing investigations into their conduct. The coalition government insisted requiring bosses to demonstrate they had acted responsibly — rather than requiring regulators to prove otherwise — was a better way to hold them accountable for failures on their watch.

In October this year, however, the chancellor announced plans to drop the reversed burden of proof. This revision is being pushed through as part of the Bank of England and Financial Services bill, which is due to be debated in the Lords on Tuesday when peers can table amendments.

The bill currently contains a clause which says that “no senior manager will be guilty of misconduct unless the regulators can prove that the senior manager did not take reasonable steps to avoid the breach happening”.

Labour’s Treasury spokespeople in the Lords, Lord Davies and Lord Tunnicliffe, along with LibDem Baroness Kramer, have put forward an amendment aimed removing this clause, number 22.

A senior Labour source said: “If the government wants to try to push through these reforms to the banking sector to defend their friends in the City then good luck to them.” Labour is thought to be quietly confident sufficient peers will support the amendment if Osborne does not offer any concessions.

A spokesperson for the Treasury declined to comment on the challenge from opposition peers. A spokesperson said other parts the Bank of England bill would see City regulators’ powers extended deeper into the finance industry.

“This will ensure that all financial services firms in Britain operate to the highest standards. A key part of the government’s long term plan is to restore trust in Britain’s financial services sector so that it works better for customers and businesses.”

The Conservative party does not have a majority in the Lords in the way that it does in the Commons.

Banks have been lobbying for changes a series of reforms introduced since the 2008 banking crisis. On Thursday, international regulators in Basel, Switzerland, stepped back from measures which banks feared would have forced them to hold more capital.