DailyDirt: Cheaters Sometimes Prosper…
from the urls-we-dig-up dept
If you’re going to commit a crime, there’s a certain amount of logic to trying to pull off the biggest crime you can. Why risk going to jail over a relatively small amount of money? If you can get away with a multi-milion dollar heist, you only have to do it once (if you’re not too greedy). And if you get caught, you might have the resources to escape the authorities. Here are just a few examples of some scams that might have demonstrated that crime can pay.
- In 2012, Italian police arrested 8 people related to a scheme involving $6 trillion (yes, trillion) in fake US Treasury bonds. According to US authorities, these kinds of documents are part of a growing trend of “fictitious instrument fraud” where fake securities are used as collateral in a scam aimed at unwitting investors. [url]
- How often do traders misplace a decimal point on purpose? David Miller would have made a killing buying 1.625 million shares of AAPL (instead of 1,625 shares!) if the stock beat its estimates, but Apple’s shares actually fell… oops. [url]
- The London interbank offered rate (aka Libor) is a global benchmark for financial instruments worth over $300 trillion — and it’s part of one of the largest and longest-running banking scams in history. Traders at several large banks colluded to manipulate Libor for years… because bankers were trusted to report honest numbers. hmm. [url]
If you’d like to read more awesome and interesting stuff, check out this unrelated (but not entirely random!) Techdirt post.
Filed Under: banking, cheaters, crime, fraud, libor, scams
Companies: apple
Comments on “DailyDirt: Cheaters Sometimes Prosper…”
As long they have enough money to bribe tge government they're in the clear
As long as they enough money to bribe the government,they can buy their way out of indictment.That’s how are government works.Justice isn’t blind when you buy your way out.
Too big to jail
I'd rather believe my lawyer
I’d rather believe my lawyer than my banker… 🙂
“”fictitious instrument fraud” where fake securities are used as collateral in a scam”
So they were selling mortgage backed securities?
Some former regulators say they were surprised to learn about the scale of the cheating. ?Through all of my experience, what I never contemplated was that there were bankers who would purposely misrepresent facts to banking authorities,? says Alan Greenspan, chairman of the U.S. Federal Reserve from 1987 to 2006. ?You were honorbound to report accurately, and it never entered my mind that, aside from a fringe element, it would be otherwise. I was wrong.
Sas one of the responsible for the current financial meltdown?
Re: Re:
says*
Cheaters gonna cheat.
Humans gonna be hypocrites.
We are doomed.