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The Scam Wall Street Learned From The Mafia - By Matt Taibbi

The Scam Wall Street Learned From the Mafia
How America's biggest banks took part in a nationwide bid-rigging conspiracy - until they were caught on tape

By MATT TAIBBI
June 21, 2012 11:20 AM ET

Some highlights, followed by link to full story

"In short, this was like the scam in Office Space, multiplied by a factor of about 10 gazillion: Banks stole pennies at a time from towns all over America, only they did it a few hundred bazillion times."

"How did they rig the auctions? Simple: By bribing the auctioneers, those middlemen brokers hired to ensure the town got the best possible interest rate the market could offer. Instead of holding honest auctions in which none of the parties knew the size of one another's bids, the broker would tell the pre­arranged "winner" what the other two bids were, allowing the bank to lower its offer and come in with an interest rate just high enough to "beat" its supposed competitors. This simple but effective cheat – telling the winner what its rivals had bid – was called giving them a "last look." The winning bank would then reward the broker by providing it with kickbacks disguised as "fees" for swap deals that the brokers weren't even involved in."

"The defendants in the case – Dominick Carollo, Steven Goldberg and Peter Grimm – worked for GE Capital, the finance arm of General Electric. Along with virtually every major bank and finance company on Wall Street – not just GE, but J.P. Morgan Chase, Bank of America, UBS, Lehman Brothers, Bear Stearns, Wachovia and more – these three Wall Street wiseguys spent the past decade taking part in a breathtakingly broad scheme to skim billions of dollars from the coffers of cities and small towns across America. The banks achieved this gigantic rip-off by secretly colluding to rig the public bids on municipal bonds, a business worth $3.7 trillion. By conspiring to lower the interest rates that towns earn on these investments, the banks systematically stole from schools, hospitals, libraries and nursing homes – from "virtually every state, district and territory in the United States," according to one settlement. And they did it so cleverly that the victims never even knew they were being *cheated."

Full Story : http://www.rollingstone.com/politics/news/the-scam-wall-stre...

Also, thanks to the reddit community, their thread on this topic here :

http://www.reddit.com/r/politics/comments/vdtld/the_scam_wal...



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Good stuff..

Really good stuff. I like Taibbi... except for when he was a jerk to Rand.

'Peace is a powerful message.' Ron Paul

How to get them in prison?

A Liberty fund to support aggressive prosecutors?

I was going to post this today but then saw it was already

provided. What a shame only ten people seemed to bother to read it. I guess the defense attorneys representing these criminals are right....fraud committed against the American taxpayers over decades by criminals on wall street and by our (s)elected politicians is just too complex for the apathetic citizenry to understand or comprehend. Let the stealing continue.

A long read but well worth

A long read but well worth the time of anyone who doesn't yet understand just how deeply corrupt the government - financial system relationship has become.

I must be willing to give up what I am in order to become what I will be. Albert Einstein