The Phaserl


U.S Banks Are All Engaged in MASSIVE FRAUD!- Helen Chaitman

from Marcus Denning:

JP Madoff author is interviewed by Marcus Denning on Bernie Madoff, who was convicted of the largest ponzi scheme in U.S history. However the real story is how JP Morgan allowed this scam to go on and the degree to which criminal behaviour is mainstream in the banking system, which threatens to bring the entire global banking system down.

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4 comments to U.S Banks Are All Engaged in MASSIVE FRAUD!- Helen Chaitman

  • Craig Escaped Detroit

    I am always amazed at how ACCURATE & prophetic this Southpark clip is about the banking criminal syndicate, Wall street, The FED, COMEX, retirement accounts, safe deposit box contents, etc etc.

    As soon as you let it go from your hands…..(and if it’s not gold and silver)….

  • Craig Escaped Detroit

    Iceland was the only place to put top banksters in jail and did not concede to bankster frauds.

  • rich

    SEC Shamed: Whistleblower Refuses Multimillion Dollar Award Due to Ex-Deutsche Bank Attorneys at SEC Protecting Deutsche Execs (and Themselves)

    As Ben-Artzi explained, and as we’ve discussed numerous times over the years, the revolving door between Deutsche Bank and the SEC is so extensive that it’s hard to see it as an accident. We’ve argued repeatedly that the failure of the SEC to pursue abuses in the CDO market in anything more than a cursory manner was due to the fact that the head of enforcement, Robert Khuzami, had been the General Counsel for the Americas for Deutsche Bank from 2004 to 2009. Deutsche Bank salesman Gregg Lippmann was patient zero of CDO abuses. CDOs constructed for the purpose of generating cheap subprime shorts were the mechanism that turned what would have been a savings and loan level domestic banking crisis into a global financial cataclysm. The failure of the press and regulators to pursue the central role of this strategy in the financial conflagration means that how and why we had a global financial crisis is still almost universally misunderstood. But any serious investigation of CDOs would have implicated Deutsche Bank and thus Khuzami.

    And please don’t try arguing Khuzami could have recused himself. The head of an operation cannot effectively be taken out of the picture. No one is going to pursue a probe that will undermine his boss unless he thinks he can pull off a palace coup.

    But as the Ben-Artzi case reveals, it’s even worse. As we wrote in June 2013 in Mary Jo White Institutionalizes Deutsche Bank Protection Racket at the SEC, the agency hired Robert Rice as its chief counsel. Rice had been head of governance, litigation and regulation for Deutsche Bank for the Americas. Ben-Artzi had filed an anti-discrimination suit against him and three others. Dick Walker, who had been the SEC’s head of enforcement from 1998 to 2001, left to join Deutsche Bank, later becoming its general counsel.
    Critically, Ben-Artzi describes a two-tier standard of enforcement. He cites the SEC action against the pipsqueak Trinity Capital, and its Los Alamos National Bank operation, which engaged in misconduct that resembled that at Deutsche Bank. But there, the agency filed charges against five executives. The CEO paid a fine as part of his settlement and litigation against two other officers is still in process. The key section from Ben-Artzi’s letter regarding the glaring conflicts of interest:

    So why did the SEC not go after Deutsche’s executives? The most obvious concern is that Deutsche’s top lawyers “revolved” in and out of the SEC before, during and after the illegal activity at the bank. Robert Rice, the chief lawyer in charge of the internal investigation at Deutsche in 2011, became the SEC’s chief counsel in 2013. Robert Khuzami, Deutsche’s top lawyer in North America, became head of the SEC’s enforcement division after the financial crisis. Their boss, Richard Walker, the bank’s longtime general counsel (he left the bank this year) was once head of enforcement at the SEC.

    This goes beyond the typical revolving door story. In this case, top SEC lawyers had held senior posts at the bank, moving in and out of top positions at the regulator even as the investigations into malfeasance at Deutsche were ongoing.

    This took place on the watch of Mary Jo White, the current chair of the SEC, whose relationship with Mr Khuzami and Mr Rice dates back 20 years. She bears ultimate responsibility for the Deutsche fine.

    And to reiterate the point we made earlier: Khuzami and Rice recusing themselves from the Deutsche Bank investigation was a joke. The individuals who would be left running the project would all be their subordinates. Mary Jo White, per her endorsement of this revolving door and the SEC’s continued refusal to sanction executives at major firms, despite continuing pressure from the media and reform-minded legislators like Elizabeth Warren and Sherrod Brown, is clearly no supporter of enforcement that might shake up big banks or worse, highlight how badly she erred in accepting senior staff members from banks with more than a little air of sulphur about them. Any SEC employee with an operating brain cell would see that following a line of investigation that might implicate Khuzami or Rice would be a career-limiting move.

    This case highlights an even bigger issue: the degree to which attorneys and other professionals are now in the business of providing cover for crooked behavior. In the stone ages of my youth, lawyers used to tell clients what the rules were, how close to the line they could go, and what would happen if they stepped over it. Now they seem mainly to be acting as professional liability shields. One way is via having outside firms rationalize questionable actions. The execs can say, “We relied on expert advice!” and they are off the hook. Benjamin Lawsky, the former Superintendent of Financial Services for the State of New York, started to tackle that issue by sanctioning outside consultants and law firms for providing liability cover in dodgy circumstances.
    The Deutsche Bank (and also Goldman) heavy-duty use of the revolving door is another protection racket.

  • Ed_B

    “… on Bernie Madoff, who was convicted of the largest ponzi scheme in U.S history.”

    From a certain perspective, it is ironic as hell that the US Gov perpetuates the Social Security Ponzi scheme, which is THE world’s largest Ponzi scheme, but sends small Ponzi operators like Bernie Madoff (but not Jon Corzine!) to prison for doing EXACTLY what they themselves are also doing but on a MUCH larger scale. It boggles the mind.

    I have seen a definition of tyranny as “When the government routinely does things for which the citizens would go to jail”.

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