Stacy Summary: . . . And a division of Hypo. This story is a must-read. It’s remarkable how unapologetically criminal the banking industry became during the Bush administration and continues to this day. Their blatant criminal behaviour in the midst of a country famous for its mafia suggests they also believed themselves immune to the normal laws of little people. While frauds similar to the story below happened all across the US as well, no charges will ever be filed on home turf against the capos, and I doubt any action against them would be tolerated as too many Americans now equate crime syndicates with capitalism. So threatening the crime syndicates is threatening ‘capitalism.’ In Italy, however, I think the derivatives mafia may have messed with the wrong country. Italy’s anti-mafia tools are specifically designed to deal with ‘captured’ politicians who used to interfere on behalf of powerful crime bosses . . . something the US will need if it is ever going to be able to circumvent the crime families capture of Congress via their lobbyist foot soldiers.
As part of the deal, the same four banks were hired by the city to advise it on how to use the new bonds to restructure its existing debt in a way that would cut costs.
The banks had two pieces of advice for Milan: First, the city could save money by buying interest-rate swaps, which are derivatives designed to keep monthly payments low as rates change. Second, the institutions best prepared to sell them those swaps were none other than the banks themselves.
The four banks thus play four roles — as underwriters, advisers, swap dealers and counterparties in the derivative contracts.
Undisclosed Fees
The group of banks wrote in a June 3, 2005, letter that the bond issue would save Milan about 55 million euros over the 30- year life of the bonds.
The firms never said what their fees on the swaps would be, public records show. Today, Milan faces so-called mark-to-market losses of 231 million euros on its swaps, according to council member Davide Corritore.
In all, the city’s losses include at least 101 million euros in hidden fees, according to Milan prosecutor, Alfredo Robledo, who’s investigating the swap deals. The fees were buried because they were built into swap interest rates without any written explanation, the prosecutor says.
That 101 million euro price tag for Milan’s dealings with the four banks was 599 times the original figure of 0.01 percent for selling bonds and providing advice.
Tags: milan fraud · swaps128 Comments
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The way the banks try to victimize themselves is realy offensive.
If we do this or that, and so forth and so on, we will hurt the poor bankers. If we lower their salaries they will run away. As if we care!?
Let the shysters get lost!
@Dedo
I think I know what you mean. I was being more self-depricating and “sheeple” did not make me exclusive of that coined term. However, now is a perfect opportunity (when the economy implodes then explodes) that a new basis of worth that cannot be manipulated “by the chosen few”. Yes pie in the sky, but I’m a big fan of pie.
There are those who look at things the way they are, and ask why… I dream of things that never were, and ask why not?
Robert Francis Kennedy, 1968 presidential campaign
@Alex,….I agree, bring it on ; )
@Sharon:
Maybe something on the post is a sort of flag for spam? Try deleted the first part then repost here. I’m dying of curiosity until you do!
@Sharon:
Nonessential stuff from the first part.
Yes “Bring it on!” …but then, “the chosen few” killed RFK didn’t they? Power to the sheeple!
Its a new economic Alchemy of Marxism and Fascism.
WL:
Nice sentence. It’s called communitarianism, and Obama considers himself Facilitator in Chief. That is why many accuse Obama of appearing soft: he is not soft; he is clear-eyed in purpose. The brilliant move of the media whores to dichotomize the public into two factions that war against themselves is in counterpoint to Obama’s fusion of left right elements in the statist machine.
Could it get any more brilliant?
Power to the sheeple!
@Alex:
Go sheeple! Whoop for the weak! Rah Rah! Rise up whimpies!
@sharon
I too am waiting for your post…
Here is my take on Beck;
He has gone through a dramatic transformation recently. In fact, he is exposing many issues that Max and Stacy have been sharing and have not been picked up in the MSM. I have chuckled when his views align with most here and yet he is vilified for being a right wingnut.
He is:
Pro gold
Anti Fed
Anti money printing monetization
Anti US debt
Anti Goldman
Left right paradigm fallacy
Anti oligarchs
Anti US Government corruption left and right
Believes in market manipulation and a crash coming
Blames the right and the left for economic problems
His error was to blindly follow the right wing Bush admin without being critical. He now admits that that was wrong. He was not critical of the right.
I do respect him because he is passionate and believes what he says even when he is wrong. I don’t agree with him on many issues but I was recently surprised that he is actually getting it. He has moved a long way. Admits his errors.
So, he is attacked from the left for being a right wing propagandist, but that is no longer the case.
America is a center right nation and the Obama admin was elected by a well organized left with an expectation from the masses that he would move to the center. So far, he hasn’t. If he does not move to the center, there will be a massive public backlash. Clinton was forced to move to the center. Its easy to criticiize American culture and excesses but they have a fight in them when they realize that their freedoms are being taken. They are starting to get it. A guy like Beck is exposing things that no other media does. Like him or not, I give him credit for covering some of these non MSM issues.
I am not American, but I do have a front row seat. Popcorn in cupboard.
This is a class paradigm not left v right. The elites suck the blood of the working class. You have one gang of criminals on the left and one on the right. There are opportunists who will move back and forth between the two.
A true economic alchemy of fascim and marxism
Oh crap, now I have a post waiting moderation. No links in it. Too long maybe.
I have been reading about Soros. His philosopies and inspirations. This is a scary dude.
Yeah,…..bring on Sharons post,…..we want we want,..lol
Federal Reserve Says Disclosing Loans Will Hurt Banks http://tinyurl.com/mghcua
@Youri:
Seems I havn’t lost all of my naïvetivity , that gives me hope. thougt I lost it.
Here’s Hap: poem by a man that has lost his naivity and his hope-
Hap
IF but some vengeful god would call to me
From up the sky, and laugh: “Thou suffering thing,
Know that thy sorrow is my ecstasy,
That thy love’s loss is my hate’s profiting!”
Then would I bear, and clench myself, and die,
Steeled by the sense of ire unmerited;
Half-eased, too, that a Powerfuller than I
Had willed and meted me the tears I shed.
But not so. How arrives it joy lies slain,
And why unblooms the best hope ever sown?
–Crass Casualty obstructs the sun and rain,
And dicing Time for gladness casts a moan….
These purblind Doomsters had as readily strown
Blisses about my pilgrimage as pain.
Thomas Hardy
Ah, that is my view. Blisses about my pilgrimage as pain.
@WL:
He has gone through a dramatic transformation recently.
Sounds like a Frankenstein story.
Stacy, the banks have always been criminal. The banks have been criminal going back thousands of years.
This isn’t a left-right thing.
@WL:
Might we light a candle for you to deliver your soul-led treatise from moderation purgatory?
@Sharon:
REPOST REPOST!
Webster Tarpley is spot on. His 2 books on Obama is coming to fruition. Listen to his program on GCNlive.com called World Crisis Radio. Although his views on Obama not being a US citizen, as if it matters at this point, is a dead horse.
@WL:
His error was to blindly follow the right wing Bush admin without being critical. He now admits that that was wrong. He was not critical of the right.
Funny thing. Adrianna Huffington used to be right, but now confesses to her faulty judgment prior to enlightenment.
Cameleon journalists love to change color to match the pathos of their surroundings.
Don’t worry, guys. Check’s in the mail!
@Phil…….not a coffee no coz after I posted it (hours and hours ago) others posted and Stacy responded. I can only assume I’m being ignored because maybe my following posts complaining about the moderation has not gone down well. I completely apologise if I am wrong but that’s how it seems to me. Also @WL had his post awaiting moderation hours after mine and his has been allowed through. Seems to me I’m being taught a lesson for complaining in which case we’re in kindergarten mode………can’t be doing with that. One of my main arguments as to why we are in the situation we’re in is that people are acting like children. EVERYONE in this world needs to grow up before we can resolve our problems. Haven’t you noticed how Americans have been infanticised – no wonder the country is screwed. Don’t let’s perpetuate that problem here. That’s my point!
Green Shoots or Greater Depression? http://tinyurl.com/kkzx2f
@sharon
Can you repost some of your now ether consumed views.
I believe that Becks transformation is genuine, but he has only begun to peel back the statist onion. Don’t know about the Huffster. With the academic indoctrination, everyone must become enlightened on their own.
“Just because I am paranoid doesn’t mean they are not out to get me”
Speaking of Onions “The Money Hole”
http://www.youtube.com/watch?v=eyS5n0ByLag
@sharon … as I said , I’m sure it’s NOT personal .. loads of spam in the filter – probably impossible to find your post ( maybe Stacey has been searching for hours, who knows ? ).
.
.
Back on topic … AIG
( Yes, I know …. I “do” keep going on about it )
.
.
How’s this for a crazy Conspiracy Theory
—————————————-
Basically , AIG is the Central Hub of the financial system.
Probably the “last stop” for nearly all default insurances like those for CDSs etc. are at AIG’s door.
The politicians and bankers do NOT want the music to stop .
…. while it would be good for us [ longer term ], it would mean complete loss of power for “them”.
So my guess is that they will do anything to make sure the ( same ) music continues to play. This means making sure AIG ( + FRE, FNM, C ) gets re-capitalized !
All my posts about the sudden jump in AIG’s daily trade “revenue” since the 20:1 reverse plit ( from 10 mio$ per day to 5 Bio$ today ) is more than suspect – as now ZH and Denninger are starting to talk about ( and they noticed similar games on FNM, FRE, C ).
Just supposing we have a market crash … just after AIG hits 300$, and AIG has to pay up on some CDS etc. insurances ; and suppose before they have to pay, the US Govt. devalues the US$ to 20,000$ per Gold ounce ( 20:1 ) ; and AIG is ( via Govt. garantee ) holding the ( supposed ) 8000 tons ( or more ? ) of Fort Knox Gold .
AIG would manage to live on …and the ( same ) music could contnue to play for the next 100 years.
Terrible thought of course … and of course completely zaney .. but who knows!
Is it “that” far out compared to what we’ve seen happen already ?
Look …an honest analyst:
Thursday, August 27, 2009
Howard Davidowitz Returns
(1) “In the Tank Forever” U.S. Consumers, Retailers in a Death Spiral
(2) Obama’s Spending Spree, Budget Numbers “Have all Gone Mad”
(3) “Banks Still in the Crapper”: Expect Loan Losses to Mount
http://www.fundmymutualfund.com/2009/08/howard-davidowitz-returns-to-yahoo-tech.html
Just been watching Channel 4 news and the story about Lord Turner’s suggestion to tax transactions in the markets so that bankers don’t get as much money. The response from bankers & traders:-
“Don’t pander to the masses!”
“If you do it we’ll leave!”
My response (excuse the language):-
It’s the masses, you parasitic cockroach f*ckhead, who pay your wages you utter gobshite! And please do feel free to f*ck off – we’ll be so much better off if you do.
@sharon …
Nice !
@Phil……….I know I’m such a lady!
Meant to put it on the other topic.
@Phil: “AIG is the central hub of the financial system>>>holding the gold reserves and a potential revaluation @ 20:1 per ounce” ……not that zaney really…I once proposed that as each nations debt to GDP ratio approached 100:1 ( Japan is actually 134:1 as on today) for each of the G-8 countries that somehow they might permit it a raise to 200:1!!!!!! Thus perpetuating the current system in perpetuity!!!!! Why not??? They have all the politicians, armies and courts in their back pockets…..The financial coup is the treasonous activity we are all being conditioned to accept….regardless of the elections yet to transpire: Ireland, England, Israel, Iraq, and most immediately Japan>>>>>>>>>>>Our mission ( M & S ) is to expose this newest form of imperial fascism where we are the lowly masses living in the dust; while they, the global elite, live in a parallel universe ….how else can this obvious fraud continue….they must keep changing the rules…only four corps are activating 43% of all daily trades????!!!! GS front running the 70% of all market trades by utilizing HFT…..the FED hiding the multiples of toxic monetization( and hiding the M3 data); and the obvious continuation of ( unregulated) short selling, deleveraging continues. as well as a current ratio at 35:1 or greater values; captured regulators abound; no corruption indictments have been issued at all( Bernie and Allan are small fry); and collusion where the President of UBS is golfing openly w/ Mr. Obama on Martha’s Vineyard….where should I continue ???????????? Clearly this is a criminal enterprise.
@Richard@lattitude30N ..
I’m glad you’re around ..you have the knack of explaining my post far better than I can .. well done !
Much appreciated !