bankes behaving badly.

[jerryc]

We are all aware and angry at the way US banking bosses have behaved in this financial crisis but this example of greed is almost beyond belief.

Morgan Stanley vice president Richard Garaventa has just been jailed for six years .

His crime was that over a period of seven years he defrauded the company of $US2.5 million. Between 2001 and 2008 he wrote 50 cheques ranging from $3000 to $50000 to a company he had created.

The money was spent on luxury cars, landscaping, jewelery and travel.

I know many Americans have to take a second job to make ends meet so should we feel sorry for him?

Jerry

[artme]

Don't feel sorry for his type at all!!

I wonder what would happen if banking customers were to take class action against these people? And against greedy corporate executives for sucking out unwarranted bonuses?

Having seen a reasonable amount of the world and paid particular attention to living standards where ever I go it is still surprising to see how little it takes to make most people reasonably happy and satisfied with life.

Some people just don't get it.

[jimbur]

I expect that he's classed as a low risk offender so he probably won't be stuck in a cell with 'real' criminals.
I don't know what the answer is but it could start by stripping away everything that he finds important such as the jewelry, cars etc., stop him from ever getting a credit or debit card or a loan and fit him out with his clothes at the nearest charity shop.
Jim

[tea lady]

Yes well! :rolleyes: That's not shoddy lending practices. That's actual theft. :doh: Maybe he felt he deserved all that money cos everyone hated him cos he worked for a bank. :shrug: :rolleyes:

[chambezio]

There was a case reported not so long ago where a man had embessled a large amount of money from a company and he was sentenced to something like 25 years. Then not long after that a felloow was convicted of murder and only got 7 years. "Which is the worse crime" I thought at the time. Do the Americans regard life less important than the stealing of money?
Regards Rod

[jimbur]

There's a lot to be said for rhymning slang.:D

[Bob38S]

Banks have had the general public by the throat ever since EFT was developed and wages were paid directly to the banks etc. They have a guaranteed "income" stream every Wednesday/Friday when people get paid and get, in many cases, to charge people for the privilege of accessing their own money.

Ever thought how it would be today if the banks were bypassed and workers, at all levels, were still paid in cash or cheque and the banks only got the "leftovers" of your wages rather than holding onto the lump sum until you take some of it. This, or something similar, of course will never happen again as the so called convenience, safety, attitude of the consumer toward the current system will not allow it - the banks and their shareholders would of course also fight this tooth and nail and as they have most of the population by the proverbial short and curlies they would win.

As to what is the answer - I don't really know - but I am sure that I would support any fair/valid moves to curb their excesses. I don't have a problem with anyone making a fair profit/return on investment but making billions seems a little excessive to me especially when most of these billions appear to come from fees and charges which appear to be way in excess of the actual costs of the "services they provide".

Regards,
Bob

[chambezio]

I wholeheartedly agree with you Bob38S!!!
How dare they publise half yearly profits in billions of $ when we know us "little people" are the ones who would have contributed the most with our small everyday tranactions which we make just to live!!!

[bsrlee]

Two words - 'Credit Union'.

[mjmjm]

I remember years ago when Ms Hanson said she was going to get the banks. She was politically dead from that moment on.

[Gingermick]

yeah, that's what did it

[artme]

Two words - 'Credit Union'.

You realize that the credit unions rely on the banking system??

Just have a bo peep and see what bank your credit union is attached to.

[Sebastiaan56]

They may draw on a bank for their finance and they will have arrangements to use ATM's cards etc but as far as I know they are not divisions of the banks. Credit Unions are still member owned and independently managed. You can vote out the head of your credit union, try that with a bank.

[Bob38S]

Credit Unions are certainly better than banks [IMHO] however, their "service" to members has deteriorated from when they were first developed.

While they now provide a plethora of bits and pieces [just look at the brochures] - most of which seem to be ignored by many, the primary reason why many joined has slipped eg QTCU used to offer 10% pa interest on savings based on a monthly balance as did {I believe} most others - I'm talking the early '70's here - have a look at what you get now - while better than the banks they are closely aligned re charges and returns. I guess it is a little like getting bitten by a very small croc or getting bitten by a giant croc - we are all bitten just not as badly.

Regards,
Bob

[artme]

They may draw on a bank for their finance and they will have arrangements to use ATM's cards etc but as far as I know they are not divisions of the banks. Credit Unions are still member owned and independently managed. You can vote out the head of your credit union, try that with a bank.

True sebastian , but the point really is that the banking system basically has everyone by the short and curlies.

And of cpourse the banks are backed by some strange and secretive - or at least unpublicized - government legislation.

[Poppa]

Anyone remember when the government de-regulated the banking industry because banks would be responsible enough to police themselves? I think you have to realise that any business is in the business of operating for a profit. The banks will maximise their profits and do everything that the government and their customers allow to do so. The slide in the standards of banking services and the increase in the fees that they charge (and thus the profits that they make) has happened because we let it happen, and we elected idiots who either let it happen or profited from it happening.

And the shareholders (who are us, either directly or through our super funds) are happy to take the profits.

It is the same with the supermarket and shopping centre industry. The government is letting a small cartel of big companies ride roughshod over the consumers and small business owners. And we let them because it is nice to have a Coles or Woolworths at every shopping centre, and we like to get the 4c a litre off the price of petrol.

So what can you do about it? Change your habits, shout it from the rooftops, convince everyone you know to change their habits. Punish the banks when they charge you outrageous fees by switching banks. Punish the supermarkets by shopping elsewhere (Aldi is cheaper, the fruit market is often as cheap and with better quality). Write to your politician. Become a politician (and resist the constant temptation to go on the take like most of them do almost immediately). Promote honesty, honour, decency, etc, within your family and live it by example. Start a movement to clean up our act. Start a website! Do something.

This situation has been brought about by the public only looking after their own interest for the short term, rather than thinking about the good of all for the long term. The attitude of the banks only reflects that of the majority of society - how much can I get and I want it now!

[damian]

I have been with the same credit union for 20 years. It has less than 5000 members, when I call most of the staff know me by face and name. They have more deposits than loans. They are linked to NAB and the CU network for some functions, like atm's. I pay almost no fees, just a couple of $ for my visa debt every month and for the cheque book and special deposit books I use.

The british legal system developed to protect land owners from the peasants. It's become less blatant but is still essentially the same. The banking system runs for the banking systems benifit. They will do whatever they can get away with.

There is a strong case that the company is the greatest evil mankind has ever invented. It is responsible for far more killing and torture than any weapon or government. It provides the perfect enviroment for the psychopath to do what they will to the community and enjoy the legal protection of the soulless legal entity.

I became convinced in the early 90's that western civilisation is in decline. Read up on the fall of previous civilisations and you will see most of the signes are there. I have been convinced for some years now that I will live to see it's capitulation. The failure seems to be accelerating exponentially.

I am planning to get a small acreage that hopefully no one will try and take from me, get off grid, grow my own food and hide from what's comming.

Depressing, and I'm sorry for that, but I'm far from alone in my belief.

[jerryc]

The whole argument about how much, if any, government regulation is necessary is a complex issue. Laissez Faire (leave things alone) was tried by the British in Victorian times and found to be unworkable. The USA however is convinced that ANY government intervention is akin to Communism. It happened in the Great 1890's Depression, it happened in the 1929 Depression and it's happened again. Perhaps the US are slow learners.
With regards to the banking industry we can thank Reganomics and Thatcher (both greatly admired by Howard) for the present mess. Put simply, the idea was that banks would regulate themselves because the market would act as a brake on excess. Any unfettered power is a pathway to corruption.
As for the public all politicians know that the public has a remarkably short memory and resists the idea of change. Throw in also the NIMBY attitude that the majority of the public has.
i started this thread rather tongue in cheek, amazed at the greed of those who have more money than they need. That was naive of me:no:

Jery

[jimbur]

Not slow learners, just hypocritical. What on earth can you describe farming subsidies as if not government intervention in the free market?
Cheers,
Jim

[Sebastiaan56]

I have been with the same credit union for 20 years. It has less than 5000 members, when I call most of the staff know me by face and name. They have more deposits than loans. They are linked to NAB and the CU network for some functions, like atm's. I pay almost no fees, just a couple of $ for my visa debt every month and for the cheque book and special deposit books I use.

The british legal system developed to protect land owners from the peasants. It's become less blatant but is still essentially the same. The banking system runs for the banking systems benifit. They will do whatever they can get away with.

There is a strong case that the company is the greatest evil mankind has ever invented. It is responsible for far more killing and torture than any weapon or government. It provides the perfect enviroment for the psychopath to do what they will to the community and enjoy the legal protection of the soulless legal entity.

I became convinced in the early 90's that western civilisation is in decline. Read up on the fall of previous civilisations and you will see most of the signes are there. I have been convinced for some years now that I will live to see it's capitulation. The failure seems to be accelerating exponentially.

I am planning to get a small acreage that hopefully no one will try and take from me, get off grid, grow my own food and hide from what's comming.

Depressing, and I'm sorry for that, but I'm far from alone in my belief.

You're almost as pessimistic as I am Damian. But I must agree. I heard a stat I havent been able to verify, that 6 of the largest 10 economies in the world are companies. Basically we are the feudal serfs of corporations rather than Kings, Queens or landed barons of the past. All of us. Democracy is a failure, witness the US Supreme Court overturning 100yo laws about corporate sponsorship of political parties. There are already tales about how Haiti has to reform its economy to qualify for US aid, imagine what Kraft / General Mills would enforce in such a situation.

Well documented science is professionally ridiculed in the press so we can conduct business as usual, Banks get bailed out by taxpayers for no benefit to taxpayers. Yup, the dollar rules, corporations rule the dollar and the rest of us are microorganisms bred to increase profit. Wo betide those who would come between a chairman and his quarter of growth. Keep breeding folks, we are getting short on consumers (Costello, Abbott, Rudd et al)

Personally I can hardly wait for an oversized Sarah Palin sponsored by Krispy Kreme telling people that underweight is wrong and the medical professions' conspiracy against cigarettes has to stop.....