The Market Ticker
Commentary on The Capital Markets- Category [Corruption]

When do you wake up America and demand that people go to prison along with having corporate charters revoked?

Washington D.C., May 26, 2015 — The Securities and Exchange Commission today charged Deutsche Bank AG with filing misstated financial reports during the height of the financial crisis that failed to take into account a material risk for potential losses estimated to be in the billions of dollars.

Deutsche Bank agreed to pay a $55 million penalty to settle the charges.

This isn't the same Deutsche Bank that was involved in Libor rigging, was it?

Oh wait....

They called each other “dude,” “mate” and “amigo,” suggesting a certain innocence to their friendship. And yet at the center of their dispatches, United States and British authorities say, was actually a collusive effort to manipulate worldwide interest rates.

It is!

Oh, and as for the Forex rigging DB is not in the clear there either -- they just haven't gotten to them yet (you know, there's a lot of letters in the alphabet, right?)

The DoJ, the DFS and other agencies are continuing to investigate other banks, including HSBC and Deutsche Bank, for alleged forex rigging and settlements in those cases could come later this year.

So why is it again that we as Americans sit for this crap and refuse to demand that people go to prison and corporate charters be revoked?

If you'd like a (partial) list of the repeated criminal behavior of these institutions you can find it here.  And let me point out that this is nowhere near the "first" time someone's pointed this sort of repeated lawless behavior out -- I wrote articles on this very point several years ago.

The difference between robbery and charity is consent, exactly as is the difference between sex and rape.

You're consenting to repeated and outrageous acts of robbery through your lack of action America.

View this entry with comments (registration required to post)

Oh, the tangled web we weave...

Fiona He gave birth to her second child, a boy, on Jan. 24, 2015, at Pomona Valley Hospital in Southern California. The staff was friendly, the delivery uncomplicated, and the baby healthy. He, a citizen of China, left the hospital confident she had made the right decision to come to America to have her baby.

She’d arrived in November as a customer of USA Happy Baby, one of an increasing number of agencies that bring pregnant Chinese women to the States. Like most of them, Happy Baby is a deluxe service that ushers the women through the visa process and cares for them before and after delivery.

Uh huh.

Except that none of the "clients" clearly and truthfully disclose that the purpose of their "visit" is to come to the United States for the express purpose of having an "anchor baby."

And while the article sort-of mentions this, the fact of the matter is that any lie or deceptive device put forward to obtain a visa to enter the United States is a criminal offense -- an offense that ought to be prosecuted as a crime and that should result in the fruits of that action being unavailable.

“We didn’t hurt anyone. We just found an easy way to stay here to give birth. Is that wrong?”

Oh really?  So lying isn't a crime?  See, this is the issue -- not only do these folks come through Vegas (typically) to reduce the risk of being closely questioned (most people coming to Vegas from China are doing so to gamble) but in addition one of the questions asked is indeed the purpose of your visit when you enter the United States; failing to tell the truth is in fact a crime.

“Some people say these families are taking advantage of a loophole,” says Emily Callan, an immigration attorney in Virginia who’s written about birthright citizenship. “If it was a loophole you could close it, but changing the 14th Amendment would be drastic. This isn’t a loophole or a technicality. It’s an unintended consequence.”

It's not a loophole nor a legal "gray area" if you enter the United States claiming to be here for the purpose of tourism or gambling while your true intent is to give birth here and create an "anchor baby."

That's a criminal offense.

Bloomberg and others skirt this because as soon as you go there the solution to this problem is simple -- cut that crap out and prosecute everyone involved, including most-particularly the "agencies" that have as their stock in trade suborning perjury!

So...... where are the prosecutors -- and handcuffs?

View this entry with comments (registration required to post)


Meet Ahmed Mohammed. He might be the most expensive hot dog vendor in New York, especially if he thinks you're a tourist.

NBC 4 New York cameras recently captured him trying to charge a man named David $15 for a hot dog and a pretzel near the World Trade Center.

What he does is charge you based on who he thinks you are and what you can pay.  He also doesn't tell you in advance what the charge will be.

The hospital down the street does this every day.  In fact virtually every single doctor and hospital in the country does this; they do not post prices, they figure out what to charge you after you've consumed the service or good, and what they charge has no bearing on the actual good or service delivered -- people are often charged 10 or 100x as much as someone else for the same thing!

NY's Consumer Protection people are after Mohammed despite the fact that Mohammed appears to be willing to negotiate a price with you if you ask him first before you accept the hot dog.  Most hospitals and doctors won't even give you a price if you ask.

Just a short distance away and all over NY the exact same practice for goods and services that are far more important to life than a street-vendor's hot dog is not only common it is nearly universal.

Can someone explain why NY's Consumer Protection jackals haven't shut down every doctor and hospital in the city?

I'm waiting for your answer you corrupt pieces of crap......

View this entry with comments (registration required to post)


Six of the biggest names in finance have agreed to pay nearly $6 billion dollars in penalties, with five pleading guilty to criminal charges over long-running manipulation of key financial markets.

The Justice Department announced the massive settlement Wednesday, its latest in a series of deals to bring to a close probes of financial manipulation of everything from benchmark interest rates to top currency exchanges.

Attorney General Loretta Lynch said the latest settlement brings to an end a manipulation scheme of “breathtaking flagrancy,” in which traders conspired to artificially alter currency exchange markets to obtain illicit profits.


So they stole billions (more like hundreds of billions) over the years, organized behavior in the theft (that would commonly be called Racketeering!) and they will pay a fine that amounts to a small percentage of what they stole.

Nobody will go to prison as a result of this (admitted) criminal conduct and worse, none of the institutions will be broken up, lose their corporate charters or even be barred from one line of business.

An analog would be if I was to engage in a string of bank robberies with hundreds of other people, we steal a million dollars between us over a period of several years before we are eventually caught and when caught none of us go to prison or have any of the legal disabilities that a felony conviction normally brings applied to us; we are instead fined $50,000 and allowed to go on our way.

Does anyone think this is something we as a people can stand for and have any sort of "market" or, for that matter, that we can consider our government "legitimate" when it engages in this sort of odious crap?

I think not.

View this entry with comments (registration required to post)

When you commit a felony as a person, and actually get a judgment entered against you (whether you plead guilty or are found guilty) there are usually lifelong consequences.  In many states you cannot vote.  In all states you cannot own (legally) a firearm.  Getting a passport becomes extremely difficult (and often impossible.)

Now we can argue over whether these disabilities on a continuing basis should attach to you; I argue that in most cases they should not once you have served your sentence including any probationary period involved.  Why?  Because we have a basic premise in this country that once you have served said sentence you have "paid your debt."  Nonetheless, today this is true for you, I, and well, pretty much any other ordinary person.

It has never been true for banks, and now they're about to do it again.

The banks are also scrambling to line up exemptions or waivers from the Securities and Exchanges Commission and other federal regulators because criminal pleas trigger consequences such as removing the ability to manage retirement plans or raise capital easily.

In the past, waivers have generally been granted without a hitch. However, the practice has become controversial in the past year, particularly at the SEC, where Democratic Commissioner Kara Stein has criticized the agency for rubber stamping requests and being too soft on repeat offenders.

Negotiating some of the waivers among the SEC's five commissioners could prove challenging because many of these banks have broken criminal or civil laws in the past that triggered the need for waivers.

A few years ago I wrote a Ticker on this very subject -- the repeat offenses of these institutions, many of them being sufficient (three or more) to trigger three strikes laws among ordinary people.  Three strikes laws typically result in an life prison term; no parole, no nothing.  The equivalent for a corporation would be the permanent revocation of the corporate charter.  Boom, gone, done, finis.

But no, we won't see that, even though some of these institutions will have nicely exceeded three strikes -- will we?

Now tell me again why you, as Americans, should sit still for this blatantly discriminatory treatment?

View this entry with comments (registration required to post)

Main Navigation
MUST-READ Selection:
No Kidding? Stan Sees The Problem?

Full-Text Search & Archives
Archive Access
Legal Disclaimer

The content on this site is provided without any warranty, express or implied. All opinions expressed on this site are those of the author and may contain errors or omissions.


The author may have a position in any company or security mentioned herein. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility.

Market charts, when present, used with permission of TD Ameritrade/ThinkOrSwim Inc. Neither TD Ameritrade or ThinkOrSwim have reviewed, approved or disapproved any content herein.

The Market Ticker content may be reproduced or excerpted online for non-commercial purposes provided full attribution is given and the original article source is linked to. Please contact Karl Denninger for reprint permission in other media or for commercial use.

Submissions or tips on matters of economic or political interest may be sent "over the transom" to The Editor at any time. To be considered for publication your submission must include full and correct contact information and be related to an economic or political matter of the day. All submissions become the property of The Market Ticker.