Then we have world-wise bankers that created investment vehicles out of risky investments to remove the investments from the bank ledgers. Unfortunately, this strategy only conceals the risk for a time. When money stops flowing and sales stop, the game is up. Can you imagine having a license to steal and the guarantee that you will be bailed out by the government? There is little incentive for honesty or accountability when you are going to be bailed out with funding from the Federal Reserve and the taxpayers of the United States.

Wealthy banking chiefs have plundered the country while making millions, bending the regulations and laws any way they are able. Bankers engaged in predatory lending practices and created sub-prime loans for people with a limited ability to pay.

Banks of all kinds employ the use of the fractional reserve. For each loan that is made, 10% is held in bank reserves that cannot be loaned out. The remaining 90% is loaned out to other qualifying customers. The fractional reserve that is required for banks is not enough capital to insure liquidity during downturns and reverses in the lending market.

The finance industry is no longer interested in the long-term success of any venture, but rather short-term commissions and profitability. The turnover of employees and managers within the industry virtually insures the worst kind of corruption. The rich commissions made from the “sub-prime mortgage bubble” have already been made and spent. The banking industry has been caught red-handed once again. What is being done about the scandalous abuse of power?

The Federal Bureau of Investigation has been investigating the banking and mortgage industry since March of 2007. Any conclusions will be slow in coming. The FBI expects that several years will elapse before any prosecutions can take place. In the meantime, the U.S. economy will continue to deal with the fallout from this crisis.

by E. Manning