And the massive gutting of social programs and workers benefits takes place against these types of financial thievery. ...The court ruling declares that the judge had no jurisdiction in determining what is in the public interest and that only the SEC, an organization run by the former and future lawyers for the big banks, could decide that. Citibank was accused by the SEC of creating a billion dollar fund in 2007, composed largely of junk mortgage assets, which the bank sold to investors with the lie that the assets were selected by an independent adviser. Then, without telling its investors, Citibank took out a short (a bet, through financial markets, that an investment would fail) against its own junk fund. Citibank successfully palmed off the worthless derivatives. In addition to protecting itself against a huge, expected, loss on its billion-dollar investment, the SEC claimed that Citibank achieved a $160 million profit. Duped investors lost over $700 million. As in nearly all of its dealings with Wall Street crime, the SEC avoided criminal prosecution and even avoided charging the bank with fraudulent intent. Instead, the SEC simply charged “negligence.”.........
Posted on: Tue, 10 Jun 2014 12:42:12 +0000
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