Week 8 – Matt Taibbi: World’s Largest Banks Admit to Massive Global Financial Crimes

The video begins with a report of some of the biggest banks: Citibank, JP Morgan Chase, Barclays and Royal Bank of Scotland pleading guilty to misusing their power to manipulating the price of currencies and interest rates. The “companies” pleaded guilty for these crimes. But no person was charged with these crimes just the company. This means that no person goes the jail and the company takes the fall. A big time trader texted in chat saying “If you ain’t cheating you ain’t trying.” This was happening in the Forex (Foreign Exchange) markets which is the biggest of market and actually the least regulated. Presidential Candidate Bernie Sanders came out to say that he wants to make an effort break up the big banks. He wants to put the individuals and corporations on notice that the pressure is on. Unfortunately, as we know he did become the president. The people of Democracy Now! released a quote saying the banks are still too big to fail because “The top six bank companies are considerably larger than before….Banks can still use taxpayer-backed insured deposits to engage in high-risk derivative transactions.” Since, Dodd-Frank the banks have gotten bigger and bigger from mergers and acquisitions, which make them harder to oversee. The worse part is that the top executives are not going to be the ones who pay for the wrongdoing, the shareholders are the ones that will be hurting.

In sustainable practices, this is not a sustainable measure. The fact that these banks are so enormous make it more difficult. Given the magnitude of their power, they should be more monitored not less. I believe that the government should be more aggressive in trying to find the wrongdoers and make examples out of them. It should make the companies feel obligated to do the right thing and encourage the people to increase their ethical standard. The standard of ethics are not common with everyone as they should be. I believe that the company’s executives have a big role in their practices. The message they spread for more morale will trickle down to the first employee. The ethics play a large role in this because they are in charge of people’s money, the markets and exchanges of goods which effect the economies of the entire world.

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1 thought on “Week 8 – Matt Taibbi: World’s Largest Banks Admit to Massive Global Financial Crimes”

  1. It is hard for the banks to be broken up now because of the size of them and the control that they have over the economy. But it is for that exact reason that they need to be heavily monitored and operate for the good of their clients, not themselves or the executives. It’s ridiculous that they con openly admit wrong doing but the people who were actively breaking laws are not prosecuted.

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