Federal Reserve Vs. Treasury Dept. Fight Over Shaming the Banks

STANDARD CHARTERED accused of conducting secret money laundering transactions with Iran.
“Mr Lawsky has accused the bank, which employs nearly 90,000 people worldwide, of breaking money-laundering rules and processing $250bn of transactions on behalf of Iranian clients. The regulator has given the bank until next week to “demonstrate why [the bank’s] license to operate in the state of New York should not be revoked”.
Apparently some public officials are expressing their outrage and going off the reservation. In this case of money laundering the official went around the Federal Reserve and used his position to issue a report about the illegal activities — laundering money for terrorists — about $160 billion worth, which is a drop in the bucket when you compare it to HSBC and other banks who reportedly engaged in the same activities on behalf of drug cartels. It was Benjamin Lawsky, head of the recently created New York State Department of Financial Services
The Federal Reserve is issued off because they were in “delicate negotiations” with the offender, following a policy of limiting the “shaming” of Banks that violate laws and public policy and in this case, potentially treason.
The official in this case decided that shaming and exposing Bank practices to the light of day was exactly what was needed and I agree with him. Hopefully more regulators will issue such reports regarding the massive mortgage fraud perpetrated upon the world economies. This official was obviously not feeling bound by the veil of secrecy that served as policy.
Millions of homeowners have been foreclosed, their lives ruined, and their neighbors lived ruined by unemployment and the blight of rows upon rows of vacant homes. Many of these homes homes were promptly abandoned by the Banks after foreclosure. Banks are creatures of the societies that charter them and allow them to exist. When Banks go errant acting against the interests of the society that allows them to exist they must be held with their feet to the fire.
More than 6 million homes foreclosed and it looks like another 10 million will follow unless we stop this charade. This was a direct strike against the entire society the government. It created world chaos and nearly destroyed our ability to recover and certainly delayed a recovery for decades.
 This was accomplished by fraud. Investor-lenders and homeowners were fooled into signing papers that served only as vehicles for the Banks to act as though they were principals in a transaction that never existed — while at the same time acting as intermediaries in the real transaction, leaving the borrower and lender high and dry.
While the illegal, wrongful and perhaps treasonous behavior of the Banks is allowed to continue, in order to maintain public confidence in a corrupt system, countless lives have been lost to suicide and depression. Maybe more officials will be encouraged to beat a new path to the criminals who ran these Banks and their societies into the ground.
Don’t talk to me about “delicate negotiations” when the is being used to create loss of life and mayhem across the world. I don’t want to hear about public confidence relating to the housing market and Foreclosures when practically none of the Foreclosures were ever legal, proper or moral. The fact that ordinary people cannot decipher the real fraud is no excuse for keeping them in the dark and failing to act on such behavior with law enforcement, regulation and legislation.
These banks have turned into wild beasts defeating every step we take domestically and in foreign policy. They must be stopped — and this report is a good place to start. Creditors should be paid once on each obligation. Allowing intermediaries who are supposed to facilitate transfers of  money to become “temporary principals” is a dangerous precedent. It invites moral hazard and plays on the unfortunate view that business people can reorganize their debt and other obligations while individuals are forced through hoops and ladders.
While the investor lenders thought they were covered by proper behavior in handling the vast quantities of money they handed over to the banks, their agreements were routinely ignored as the money was subjected to fast talking titans of Wall Street who took some of that money for themselves. While the investors thought they were properly protected by the documentation of loans, insurance and credit default swaps, the Banks left them buck naked with no documentation to support their ownership of specific loans and no proceeds distributed from insurance, credit defaults swaps and federal bailout.
The Banks committed the further fraud of “borrowing” the loss of the investor lenders and using it as an excuse for the bailout — a fact now corroborated in public reports.
So where is your outrage? When will you step up t the allot box, march in the streets and write a dozen letters to law enforcement and legislators to put the pressure, the accountability and the light of day on a sector that we let become half of our reported gross domestic product trading paper on on existent transactions. All I ask is the truth. What about you?

The Fed And The Treasury Are Furious That A No-Name NY Regulator Went Around Them And Attacked Standard Chartered

%d bloggers like this: