Opinion – Capitalism in Crisis Amid Slow Growth and Growing Inequality – SPIEGEL ONLINE – John Gelmini

Dr Alf poses interesting and entertaining questions. Let me restate them for convenience:

  1. Following the financial crisis of 2008, how many dodgy bankers have ended up in jail?

  2. Also why have the big banks not been broken up to increase competition?

  3. Surely, it would have been prudent to reintroduce the Glass Stiegel Act in the US, separating retail and investment banking?

Lehman Brothers Rockefeller centre

Lehman Brothers Rockefeller centre (Photo credit: Wikipedia)

1) The answer to his first question is hardly any in the UK.

The US does jail bankers and dodgy securities and share salespeople like the rehabilitated “Wolf of Wall Street”(Jordan Belfort) but even there the men who gave them their instructions still walk free.

One HSBC banker implicated in New York for permitting Mexican drug barons to launder their proceeds through his bank (teller windows in HSBC branches were widened so as to be better able to accept holdalls containing drug dealing cash) is actually working for the UK Government. This no doubt on the basis that he knew nothing about what was going on and despite the $1.5 billion USD fine imposed on that bank by the US courts.

2) Because by keeping them bigger, future opportunities to plunder bank depositors using “haircutting” and other as yet to be tried techniques are preserved for future use on the basis that these banks are “too big to fail”.

The so called “Crises” were nothing of the kind but were deliberately engineered collapses designed to fleece ordinary people and further enrich those in ultimate control.

They succeeded brilliantly and the real culprits escaped scott free with vastly enhanced untraceable wealth.
Breaking up banks into smaller units makes them easier to police so it will not happen.

3) Glass Steagall will not happen for the same reason

As to growing inequality, SPIEGEL ONLINE will have more of it to write about long into the future as things are set to get much worse.

This not least because AI, robotics, automation, .cybernetics, voice recognition and 3D printing will eliminate swathes of jobs and directors of those businesses will for the time being pocket the extra profits by paying themselves even more than they do now.

John Gelmini

Opinion: RBS hit with £3bn bill as hopes slide for sell-off before election: Bank faces huge new mis-selling scandal-Mail Online-John Gelmini

Nothing will be done about those responsible for the 2008 Financial Crisis because those responsible are too powerful and control the politicians, the judiciary, the police and the entire system although their spokespersons would have us believe otherwise.

Changing the politicians, regulators or quangocrats makes no difference because who we vote for and who obtains quangocracy appointments are already been decided in advance.

We are told that either the voters decide or that we have a “meritocracy”, in each case this is not the truth because voters are given misleading information and their choices are “edited” to ensure that they choose “correctly”.

As for appointment on merit we have only to look at the NHS, the education system, the fiddled crime figures,the lack of regulation by regulators and the incompetence of the BBC to see that all is not well.

Putting pressure on the politicians can effect small changes but then those costs are clawed back from elsewhere as is happening with HSBC PLC which received record $1.5 billion USD fines imposed by the US Courts for laundering drug money for the Mexican Drug Cartels.

The drug mules took the money to HSBC branches in holdalls designed to precisely fit bank teller windows in HSBC branches yet HSBC at the time and one of its top executives who now advises David Cameron,claimed not to be aware of what was going on.

We now hear that people wishing to make cash withdrawals from HSBC branches have to provide evidence of why they need to withdraw the money and we see that all High Street Clearers from the Big 4 are introducing fee charging accounts and are engaged in new forms of chicanery.

Dr Alf is right to point out that none of our remotely guilty men is being made to pay, so we still have Sir Fred Goodwin with most of his pension, the directors of Equitable Life still live like Roman emperors while their long-suffering policyholders die off one by one,several of the most inept loss creating bankers have been given new jobs and “rewards for failure” is a concept that is alive and well in the UK.

The scale of these activities makes convicted criminals like Ivan Boesky, Michael Milliken and the so-called “Wolf of Wall Street”,Jordan Belfort look like amateurs.

Certainly City bonuses are back and new ways are being devised to circumvent the Government,s bonus cap including doubling basic salaries to ensure that the most productive employees do not leave en mass for more lucrative roles at other banks.

John Gelmini

Enhanced by Zemanta