“The law perverted! And, the police powers of the states perverted along with it!
The law, I say, not only turned from its proper purpose, but also made to follow
an entirely contrary purpose! The law becomes the weapon of every kind of
greed! Instead of checking crime, the law itself is guilty of the evils is supposed
If this is true, it is a serious fact, and moral duty requires me to call the attention
of my fellow – citizens to it.” – Frederic Bastiat
“Wall Street banks have the right to express their views to lawmakers and
regulators through lobbying, but the law is clear: If they want to influence
lawmakers, they must disclose their lobbying expenditures.” Elizabeth Warren
“The law courts must appear as a threatening gesture toward secret vice. The
bank must declare: here your money is secure and well looked after by honest
people.”- Adolf Loos
Collusive Bank Theft – White Collar Crime
The major banks of the world are involved in Major White Collar Crime and have been for many
years. I have decided to spell out the truth because I have become disgusted with our Justice
system. The problem is that
The banks changed the laws to hide their collusive theft – Enacted Graham, Leach, Bliley
and repealed Glass Steagall.
If caught, the banks changed the law so that they will have their losses covered as being
“too big to fail” under the Dodd Frank Law. In addition, they appear to be in collusion with
our government and as a result, the government gets large fines but no one goes to jail.
When caught stealing, they are fined rather than put into jail. This implies that our Attorney
General is involved – at least to the point of taking fines rather than enacting RICO law,
which would put executives in jail and take their assets – including Jamie Dimon’s
There are two forms of White Collar Bank Criminal Theft. Both have now been identified,
investigated, convictions given, convictions accepted, fines have been given, no executives
have been named, no one has been sent to jail. No RICO laws used and this is precisely
why they were enacted.
2. Fixing the prices of mortgages – 10 banks “named”
o Found guilty of criminal theft
o Put on probation for a short time but
o Set free to continue their practices
The banks have been given direction to do business as usual which means continue their
theft. Who from? Our Attorney General, Eric Holder and presumably our president Bark
White Collar Crime I – Collusive Price fixing in LIBOR and FOREX rates
I wrote and published two books on this topic. See the references below.1 2 This involves fixing the
prices of LIBOR and FOREX and profiting from the price fixing.
While I was documenting the mysterious suicide deaths of 66 executives from the major Federal
Reserve banks and other transnational banks, the Justice department was investigating LIBOR
and FOREX price fixing and related theft. In the summer of 2015, they announced that those 5
banks were investigated; the banks were investigated, indicted and found guilty of criminal fraud
in fixing the prices of FOREX and LIBOR Rates. 120 FBI agents were involved in the
investigation. Eric Holder announced that these banks agreed to pay a $6.5 billion fine, be on
probation for three years and then continue with business as usual.
Notably missing is that the government did not release any numbers on the size of the theft. I
calculated it as $14.2 trillion per year.3
10 years. The facts about this investigation say a lot. Consider that the Justice Department –
Put 120 FBI agents on the investigation versus 1,200 agents on the Savings and Loan
There were no referrals, no indictments and no one went to prison for the LIBOR and
FOREX trading theft.
There were 1,000 indictments, 600 convictions and 100 men went to jail in the Savings and
Loan thefts in 2008.
No RICO laws were enacted on this Felony when RICO was designed and passed to
punish precisely this type of crime. RICO requires two instances. The bank pleadings for
guilty was for only instance. The logic of a 3-year investigation and only one instance
caught and documented is illogical.
It appears as if “Crime does pay”. More importantly, it appears as if the Justice department made
the cognizant decision to not prosecute the individuals involved for criminal offenses. Eric Holder
allowed the banks to plead for one offense for each category and pay a fine for criminal theft.
Why? No one knows and I am not going to speculate. However, it is very suspicious. Outwardly,
it appears as if there is collusion between the government and the banks. If so, this also is a
White Collar Crime.
In summary, 5 banks receive a $6.5 billion fine for possibly 10 years of FOREX and LIBOR price
fixing that I calculate led to them gaining $14.5 trillion per year of additional profits. It also
appears as if our government decided to not prosecute anyone. They provide a “fine only”
punishment that allowed the banks to pick up the cost and be tax deductible. Further, they
ignored RICO statutes that were put in place specifically for these types of crime. If RICO were
used, then the individual executives would have been subject to loss of all their assets.
RICO has been used against organized crime to seize assets. It was designed for crimes such as
documented here. It was just not used.
White Collar Crime II – Mortgage Price Fixing
I did not calculate the amount of potential mortgage price fixing theft that went on. Why? I find it
difficult to find numbers in this area that are accurate. Obfuscation is what is occurring.
Nonetheless, both in Europe and the US, investigations were carried out by government.
Exhibit 1, LAMB CHOPS, tells the story when government investigates banks about collusion and
theft. In no instance in the US does anyone go to jail. Only the public citizen suffers.
The mortgage theft follows several patterns. One of the biggest is to
Entice citizens to subprime loans with virtually nothing down that the banks know will
Package defaulted subprime loan mortgages is AAA packages and sell to insurance
companies, retirement plans and governments
When the loans do not make payments and the new owner discovers that the AAA
package consists of subprime loans, complain to the originating banks and sue them.
FED reserve using Quantitative-easing buys these subprime packages at face value and
creates money to pay for them at $50 billion / month.
Banks use the new cash to invest in the stock market and make profits
Bank profits from 2007- 2014 as reported by the FDIC were $700 billion.4
These admitted White Collar Criminals have strong reasons to steal – – – nothing happens to
them when they are caught. Barry Ritholtz, co-founder of Ritholz Wealth Management and
author of Bailout Nation5
“We have taken what used to be jail terms – that should in theory, prevent that
kind of behavior from happening – and instead it became, “Let’s engage in
some extralegal activities, we will pay some penalties, but we will make a load
more in revenue,” Ritholz says. “If I steal a billion dollars and have to give back
$500 million as a fine, I’ll take the trade every day. Every day,” [Emphasis added]
In addition to a White Collar criminal attitude as displayed in the above quote, the banks
have used the legal profession to keep themselves out of jail. The following quote
provides some insight as to how much is spent on keeping the principal executives out
“The biggest US Banks led by J.P. Morgan Chase and Company and Bank of
America Corporation, have piled up $103 billion dollrs in legal costs since the
financial crisis, more than all dividends paid to shareholders in the past five
That’s the amount allotted to lawyers and litigations, as well as for settling
claims about shoddy mortgages and foreclosures, according to data compiled
by Bloomberg. The sum, equivalent to spending $51 million a day, is about to
erase everything the banks earned for 2012”
The magnitude of this makes one wonder if the Legal Profession, who are trained to notice when
the law is infringed is not also tainted. It they blew the whistle, the gravy train would stop.
BANKS WHO PAID FINES
Now, let’s look who has paid fines. Remember, when Eric Holder announced the $6.5 billion fine
for the 5 banks, he also said that there would be another fine coming for 9 banks that were
involved in the Mortgage Debt investigation. What I found when I looked to find actual Justice
Department announcements was nothing. These numbers are very difficult to find. I did find a
number of articles that had misaligned information. I chose one the seemed to be more recent
and reliable.The results are contained in Exhibit 2, BANKS THAT PAID FINES. I added the last
two columns from my work on Who’s Next?
I was surprised to see the amount of $180 billion because FOREX and LIBOR garnered only $6.5
billion in fines for a $14.5 Trillion / year in theft. This implies that the theft in the mortgage market
should be in excess of ten times the LIBOR and FOREX thefts or about $180 trillion. Of course,
this is over 5-6 years, about $30 trillion / year, or twice the $14.5 trillion for FOREX and LIBOR.
Thus, under this analysis, it appears as if the mortgage theft is about twice the LIBOR and
FOREX Theft. Also, remember, this could not happen if the Attorneys spoke up or the
government was truly doing their job of protecting the citizen…
Now let us look where the money is going. It is also insightful.
WHERE ARE THE FINES GOING?
My underlying hypothesis is that government personnel and banks may passively be in this
together. The way to test that hypothesis is to determine how much the government got from the
fines and how much the citizens received. provides
Exhibit 3, WHERE DID THE FINES GO?
As one might expect in this discussion of “What Should We Have for Lunch?” the citizens got nothing.
Out of the $180 billion, the states got $5.3 billion. The states promptly put that money to
work funding the governor’s pet projects such as the repair of the Tappan Zee Bridge in
New York. Another favorite was the funding of underfunded state pension funds. A very
little went into upside down mortgage protection. I could not find any analysis of the
$180 billion but the posted analysis of $110 billion is representative of what actually
Most of the money went into the treasury’s bank account. Right now, our government is
technically bankrupt. They need revenue. This is how they collected a big chunk of
The magnitude of the White Collar crime is astounding. The fact that it occurs and they get away
with it says a lot about our society. It takes a collusion of government, bankers and attorneys to
facilitate money transfers of this magnitude from the citizens to the government – – and the banks –
– and the attorneys in the amounts estimated in this short article.
In my mind, this represents collusive white-collar crime against the citizens. Further, they are
getting away with it since no one is objecting to this theft. This is called “salami slicing” in the
culture of White Collar Crime. I can just hear the bankers and government Justice department
people saying – —
IT IS TIME FOR DINNER!