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9/07/2009

Do banks have the ammo to fight frauds

This headline in the ST reminds me of the realisation in the European community of the real robbers that are robbing the people. Before I go on, the article in the ST was about banks trying to curb credit card frauds and limiting the liabilities of card holders. The European concern that was taken up by their Finance Ministers at the G20 was about the disproportional ransoms that the bankers are extorting from the banking industries. They reminded the ministers at the meeting that even before the financial crisis is over the bankers are paying themselves the crazy bonuses that they were getting before. And the Americans are not going with the Europeans as the main culprits are the American bankers themselves. These robbers are robbing their shareholders of hundreds of millions each, individually and annually. How on earth could they justify their abilities to earn that kind of money? With or without them, with a new team in charge, their banks are going to do just as fine, or just as badly. Many were managed to the brink of bankruptcies, or were bankrupts and needed govt and public funds to save them. The read fraudsters that are cheating the minority shareholders are the bankers themselves, and the CEOs of MNCs where the minority shareholders are helpless while the management just write their own pay checks, and pay themselves crazy. Do we need to look anywhere for fraudsters? Oh, pardon me, I am referring to European and American bankers and MNC CEOs, those who took tens or hundreds of millions. And it is not just the CEOs, it is the whole management team and board of directors. All are in it. It is a case of I pay you and you pay me, I approve your pay and you approve mine.

5 comments:

Anonymous said...

All those, be they governors, bankers, financial executives/employees and regulators that are in cahoot are fraudsters.

And the Problem; fraudsters are everywhere.

patriot

Matilah_Singapura said...

All banks vary in the degree of fraud they commit. Remember that banks are a cartel protected by the govt. Therefore one should never be "surprised" to notice huge amount of YOUR MONEY going to and fro from govt to bank and bank to govt.

Banks are the original state + private enterprise racket.

I consider it "legalised crime". If you or I do what they do, we will be instantly charged and jailed. However banks can get away with fraud because the govt says it is not only "ok" but "necessary".

Being a hard-core capitalist who loves wealth, I personally despise the cartelized banking industry. They consistently prove the adage: "A fool and his money are soon parted"

redbean said...

do the people remember the subprime and lehman bonds?

Matilah_Singapura said...

Who gives a shit if they do or don't?

Almost everyone wants a "good deal". That's how suckers get conned. And they will continue to get conned because as soon as a scam is discovered, many new ones spring up.

Anonymous said...

The big banks in US are trying to pay back the Government loans as quickly as possible, so that they can go back to the business of hanky panky without the control of the state, tied to their loans.

The argument is that without the year end million dollar bonuses, they cannot get the best talents, so the earlier they get rid of Government intervention, the better.

Do they remember the subprime and lehmen bonds? Who cares? Greed is always good. The Government will always be there to bail them out. Just a year after the crisis the same old habits are surfacing.