Banks and Fraud

[will]

This is a fascinating and most likely very accurate essay. Complex derivatives and swaps are tailor made for the kinds of fraud described in this essay.

www.ritholtz.com/blog/2012/05/the-fraud-recipe-for-ceos-why-banks-hate-free-markets-and-love-crony-capitalism-and-the-dysmal-legacy-of-mainstream-economists/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+TheBigPicture+%28The+Big+Picture%29

It ain't the poor and working people who caused the finance bubble.

[sookie]

I don't know how many facts support this article, but it rings true to me.

[will]

More anecdotal evidence, fresh today.

www.calculatedriskblog.com/2012/05/jpm-2-billion-trading-loss-on-synthetic.html

Somebody made a bundle dreaming up opaque shit, selling opaque shit, and then getting out of Dodge, most likely. One "rogue" trader will get hauled in and hung. The senior partners and managers who were watching the store will go on to the next fraud, secure in their position above the perps who will fry.

Cynical? Moi? Couldn't be!

[baldrick]

Not to mention it's the investors (of all sizes), not the management that absorb the losses. Those losses should be taken out the hides of Dimon and his executive team. They, like the captain of a Naval ship, are ultimately responsible for the actions taken in the company's name. Or, at least, they damn well should be, but we know that isn't how things work....

I ain't no cynic, neither....

[will]

More from the annals of dumb and greedy. They either don't know what they are doing or they are hiding their culpability.

delong.typepad.com/sdj/2012/05/what-jamie-dimon-doesnt-know-is-plain-scary-bloomberg.html

Tar and pitchforks, anyone?

[baldrick]

May 13, 2012 15:48:59 GMT -5 will said:

They either don't know what they are doing or they are hiding their culpability.

I think it's a lot of both.