Jaw-Dropping Crimes of the Big Banks


Image by William Banzai

Preface: Not all banks are criminal enterprises. The wrongdoing of a particular bank cannot be attributed to other banks without proof. But – as documented below – many of the biggest banks have engaged in unimaginably bad behavior.

You Won’t Believe What They’ve Done …


Here are just some of the improprieties by big banks:

  • Engaging in mafia-style big-rigging fraud against local governments. See this, this and this
  • Shaving money off of virtually every pension transaction they handled over the course of decades, stealing collectively billions of dollars from pensions worldwide. Details here, here, here, here, here, here, here, here, here, here, here and here
  • Pledging the same mortgage multiple times to different buyers. See this, this, this, this and this. This would be like selling your car, and collecting money from 10 different buyers for the same car
  • Committing massive fraud in an $800 trillion dollar market which effects everything from mortgages, student loans, small business loans and city financing
  • Pushing investments which they knew were terrible, and then betting against the same investments to make money for themselves. See this, this, this, this and this
  • Engaging in unlawful “Wash Trades” to manipulate asset prices. See this, this and this
  • Participating in various Ponzi schemes. See this, this and this
  • Bribing and bullying ratings agencies to inflate ratings on their risky investments

The executives of the big banks invariably pretend that the hanky-panky was only committed by a couple of low-level rogue employees. But studies show that most of the fraud is committed by management.

Indeed, one of the world’s top fraud experts – professor of law and economics, and former senior S&L regulator Bill Black – says that most financial fraud is “control fraud”, where the people who own the banks are the ones who implement systemic fraud. See this, this and this.

Even the bank with the reputation as being the “best managed bank” in the U.S., JP Morgan, has engaged in massive fraud. For example, the Senate’s Permanent Subcommittee on Investigations released a report today quoting an examiner at the Office of Comptroller of the Currency – JPMorgan’s regulator – saying he felt the bank had “lied to” and “deceived” the agency over the question of whether the bank had mismarked its books to hide the extent of losses. And Joshua Rosner – noted bond analyst, and Managing Director at independent research consultancy Graham Fisher & Co – notes that JP Morgan had many similar anti money laundering laws violations as HSBC, failed to segregate accounts a la MF Global, and paid almost 12% of its 2009-12 net income on regulatory and legal settlements.

But at least the big banks do good things for society, like loaning money to Main Street, right?


  • The big banks have slashed lending since they were bailed out by taxpayers … while smaller banks have increased lending. See this, this and this

We can almost understand why Thomas Jefferson warned:

And I sincerely believe, with you, that banking establishments are more dangerous than standing armies ….

John Adams said:

Banks have done more injury to religion, morality, tranquillity, prosperity, and even wealth of the nation than they have done or ever will do good.

And Lord Acton argued:

The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks.

No wonder a stunning list of prominent economists, financial experts and bankers say we need to break up the big banks.



3 Responses to “Jaw-Dropping Crimes of the Big Banks”
  1. lies is all they tell says:

    yeah i beleive all this but what can we do about it? I am in foreclosure in florida after wells fargo failed to approve me for a hamp loan which would almost 1/2 my mortgage. they get more money in foreclosure they get more money for the default. i am fighting i have one of the lawyers that gets it but if the judge/court does not do its job because it does not want to give homeowners free houses althoughwe deserve it there is nothing we can do but keep fighting and die doing it. the affects of this stress is killing me. was at the mall today with my daughter for her birthday became dizzy almost fainted called EMS. maybe true chest pain maybe anxiety. I dont know. but wells fargo told me not to pay when i was current. i was only current because i was using my credit card for essentials. this was breach of contract, inducement into foreclosure.
    so my case goes to court. motion to dismiss last summer in july. judge denies my motion to dismiss but orders discovery. all sounds good right.
    the discovery was due aug 31 the banks motions for an enlargement of time new discoveyr due sept 30th. ok right
    “5” months later of nothing bank out of no where motions for an enlargement of time the judge grants it. does that make any sense? where are the sanctions where is the dissmisal? i am sick hope i dont die before this is over.

  2. withament says:

    The Reality IS …. The DOJ and FBI, Congress and Senate, State and Local Governments and the Prosecutors, Cops and Government Workers ARE ALL In Bed With The Whores …. Can You Say INCEST ….. http://www.bing.com/search?q=FBI+Bank+Looting+Cover+Up++Witham+&go=&qs=n&form=QBLH&pq=fbi+bank+looting+cover+up+witham+&sc=0-22&sp=-1&sk=&ghc=1

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