What's wrong with our banking system.... and nation

One of the big things that's wrong with our country--the bankers, running it.

Check this out:

JPMorgan Executive May Escape Penalty

This is a real beauty.

On top of all else JP Morgan has done for themselves but against the American people and against the country, here's one of their executives who a) apparently lied to a court, under oath then, b) said she did (lied to the court) so that c) "the nation's top energy regulator is poised to extract a record settlement from JPMorgan Chase over accusations...it manipulated power markets" but, voila!, d) this JP Morgan Chase executive is going to apparently get off, scott-free from any charges.

JPM Chase will no doubt pay a huge fine, a penalty, then disavow any guilt and again, the executive will walk.

Isn't that just a nice, neat little package?

I'm sure the same would happen for you or I, even though we're middle- or lower-class and have no such millions or billions of dollars behind us.

Right?

Why we need government--and regulation

Why do we need government? Why do we need government regulations?

Look no further than this headline from The Wall Street Journal a few days ago:

Interest Rate Probe Escalates

Barclays Agrees to Pay Record Fine; Emails Show Traders Tried to Manipulate Libor

Barclays PLC agreed to pay $453 million in fines to U.S. and U.K. regulators after admitting that traders and executives tried to manipulate interest rates tied to loans and financial contracts around the world.

If the 2008 national and international collapses of the world's financial markets weren't enough for you, or the collapse of Enron or the BP oil spill in the Gulf of Mexico, or one of the many other big catastrophes in the last few years weren't enough, this should do it for you.

Barclays Bank, in England, was just big and powerful enough to do their best to try to manipulate international interest rates to go in their favor. This, this is why we need something bigger and stronger than corporations--to control them. To keep their greed in check.

If you don't either already know this or understand it, you need to see one of the many documentaries on these collapses.

We need government as an independent check on corporations and the world's wealthy.

This, above, got Barclays a nearly half billion dollar fine.

And the thing is, the examination is still going on.

Who knows what they did we don't know?

As if that isn't enough, Glaxo-Smith-Kline of the pharmaceutical industry was also fined. This time for three billion dollars--that's $3 billion--for fraud, for stealing from the American public:

GlaxoSmithKline Settles Largest Health Care Fraud Case In U.S. History

WASHINGTON (AP) — GlaxoSmithKline LLC will pay $3 billion and plead guilty to promoting two popular drugs for unapproved uses and to failing to disclose important safety information on a third in the largest health care fraud settlement in U.S. history, the Justice Department said Monday.

The $3 billion fine also will be the largest penalty ever paid by a drug company, Deputy Attorney General James M. Cole said. The corporation also agreed to be monitored by government officials for five years to attempt to ensure the company's compliance, Cole said.

Small government? Sure. You bet.

No government? Not a chance. Weak government? Ditto. No, thank you.

So, Libertarians, you can count me out, thanks very much.

Link to original article: http://online.wsj.com/article/SB10001424052702304830704577493092589081130.html

"Inside Job" (documentary): http://www.imdb.com/title/tt1645089/

"Enron: The Smartest Guys in the Room": http://www.imdb.com/title/tt1016268/

http://www.huffingtonpost.com/2012/07/02/gsk-fraud_n_1643186.html

Good news. Let's go after 'em

U.S. sues big oil traders for 2008 manipulation

 

NEW YORK/WASHINGTON (Reuters) - Regulators launched one of the biggest ever crackdowns on oil price manipulation on Tuesday, suing two well-known traders and two trading firms owned by Norwegian billionaire John Fredriksen for allegedly making $50 million by squeezing markets in 2008. 

The Commodity Futures Trading Commission (CFTC) said traders James Dyer of Oklahoma's Parnon Energy, and Nick Wildgoose of Europe-based Arcadia Energy, amassed large physical positions at a key U.S. trading hub to create the impression of tight supplies that would boost oil prices. 

Later they dumped those barrels back onto the market, causing prices to crash and racking up profits from short positions they had accrued in futures markets, the suit said. 

If you've ever felt you've been played, you were.  In 2008, at least.

An education and warning

I hope you--and lots of people, nationwide--watched the "Frontline" special on PBS last evening named "The Warning."

It was about how our unregulated markets were allowed to be created, first, but then, further, how they were allowed to propagate, complete with rules that allowed out-and-out fraud and manipulation of the markets, with the thought that completely, utterly free markets were important and good and that they could and would regulate themselves.

They did and, because of the lack of regulation, they also collapsed.

Last evening's one-hour report told of one woman's attempt to regulate the quantity of trades--so we know how much or our economy was tied up in it--as well as regulating, again, possible manipulation and fraud.

So now, here we are in 2009 after two collapses in our markets and where are we?

After seeing it, I had to ask: How could you not come to the conclusion that we are in very much the same place, without having learned any lessons?

Goldman Sachs and Citigroup and all these people are still in power, the bonuses are still being paid out, there were no penalties, we still allow fraud and manipulation in commodity futures, we still don't regulate the trillions of dollars in hedge funds, etc.

It's hard to be optimistic about either what happened in the 1990's and its collapse, the recent collapse, now, in the 2000's and into the future.

If you didn't see "The Warning", you need to.

Links: http://www.pbs.org/wgbh/pages/frontline/warning/
http://www.washingtonpost.com/wp-dyn/content/article/2009/05/25/AR2009052502108.html
http://blogs.reuters.com/rolfe-winkler/2009/10/20/brooksley-born-on-frontline-tuesday/