No matter the country or political leanings, bankers are crooked worldwide. (but you already new that.) One more realized case for kicking out the Federal Reserve.
A man in Jinan, the capital of east China’s Shandong Province, traded more than
2,100 kilograms of gold in just 10 days gained more than 21 million yuan in profit,
using a phone-based gold-trading system developed by the Industrial Bank and
Commercial Bank.
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because it was “illegal enrichment,” according to the bank. The man, Song Ronggui, opened a personal account deposit account at ICBC in May 2006. Through the bank’s gold-selling system, he had been selling “paper gold” via telephone since the
end June.
By July 8, Song had purchased 1,057 kg of gold for over 150 million yuan for
conducting more than 60 arbitrage operations—buying gold at well below the bank’s offering prices, and selling it for a profit.
Tagged as “China’s first gold case” by Chinese media, the case involved up to
320 million yuan, and uncovered a legal vacuum. The main bone of contention was
whether the bank behaved as an intermediary platform or a party involved in the
deals.
The local intermediate court judged that the banks served as one part of the
transaction, and that it has rights to revoke deals. A final judgment from the
Supreme People’s Court of Shandong backed the bank in its verdict, according
Qilu Newspaper. It also triggered a debate whether it was legal or unjust
enrichment for Song earning more than 21 million yuan in just ten days.
In fact, the purchasing prices during these transactions were all below bank’s
offer, which should have been detected and rejected by the bank’s system at
an earlier time. Song was taking the bank’s loophole to make a profit, the
court ruled. Source
