Written by Jeff Nielson
Wednesday, 11 July 2012 10:31
On the same morning we hear that ¼ of Wall Street executives think that fraud is a necessary part of “doing business” in the financial sector, we hear of a second “MF Global”.
The U.S.’s so-called regulators are now reporting that somewhere around
$220 million in customer funds is “missing” at a financial institution
known as PFGBest; once again closing the barn door after all the cows
have run off.
With at least one out of every four bankers at U.S. Big Banks (that’s how many admitted
to being crooks in the survey) thinking that stealing is part of their
job descriptions, it’s very important for people to realize how little
protection there now is between these thieves and your
bank accounts. Based on the writing of a number of other individuals
with more expertise in these markets, it is apparently an inherently
fraudulent banking process known as “rehypothecation”
which is allowing the mass-plundering of accounts at U.S. financial
institutions, with other Western financial regulatory authorities also
rubber-stamping this relatively new form of bankster crime.
Rehypothecation
is a heinous practice permitted by the pretend-regulators of Western
markets, where financial institutions are allowed to pledge their
clients’ funds as collateral to cover their own gambling debts. I say
“inherently fraudulent” since few of the clients of these financial
institutions would ever knowingly enter into contracts with these
gambling-addicts where their cash could be used to cover their bankers’ gambling debts.
Instead,
what is happening here is that the rehypothecation clauses are being
buried in the “small print” of these contracts and (obviously) never
properly explained to these clients: seemingly textbook fraudulent
misrepresentation. The only “advantage” to a client into entering into
such a contract is a slight reduction in fees, or slightly improved
interest rate – certainly not near enough to entice people into risking
some near-100% loss insuring someone else’s gambling debts.
So
we have our “regulators” (i.e. the only protectors of our funds in the
hands of these admitted thieves) giving these fraud-factories the green
light to enter into these inherently fraudulent contracts, putting
any/all funds of these clients in permanent jeopardy. Thus it’s
important to outline how this could happen with ordinary bank accounts.
First
it must be noted that the Corporate Media (loyal friends of the Big
Banks) are referring to this as a “brokerage” problem. Understand that a
brokerage is nothing but a legal “bookie”, an entity which takes (and
makes) bets, and which must hold the funds of its “customers” in order
to do business. Apparently the principal difference now between a
“legal” bookie and an “illegal” bookie is that an illegal bookie is much less likely to use his customers’ funds to cover his own bad bets.
What
people must also understand is that the world’s biggest bookies,
indeed, the biggest bookies in the history of the world are the Big
Banks themselves (specifically U.S. Big Banks). Most of their gambling
is done in their own, rigged casino: the $1.5 quadrillion derivatives
market.
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