Russia Launches “First Strike” Against US Dollar


WhatDoesItMean

UN And Western Spy Chiefs In Panic After Russia Launches “First Strike” Against US Dollar

By: Sorcha Faal, and as reported to her Western Subscribers

In what is looking more by the hour to be a Russian “first strike” against the United States during this current “cold phase” of World War III, the Security Council (SC) is reporting today that President Putin has ordered the immediate implementation of the “Golden Tsar” attack plan against the US dollar—and that has so terrified the West, its top spy masters (the “Five Eyes Alliance”), have rushed to New Zealand for a secret meet and the UN Security Council is now rushing to the White House—but whose efforts to counter the Federation will fail; and as stated by top Kremlin advisor Sergey Glazyev who warned these Western elites: “The more aggressive the Americans are the sooner they will see the final collapse of the dollar as the only way for the victims of American aggression to stop this aggression is to get rid of the dollar…[and] as soon as we and China are through with the dollar, it will be the end of the United States military might”. [Note: Some words and/or phrases appearing in quotes in this report are English language approximations of Russian words/phrases having no exact counterpart.]

According to this report, after the collapse of the Bretton Woods gold standard in the early 1970s, the US struck a deal with Saudi Arabia to standardize oil prices in dollar terms—and through this deal, the “petrodollar system” was born, along with a paradigm shift away from pegged exchanged rates and gold-backed currencies to non-backed, floating rate regimes.

To the catastrophic effect on the entire world of the United States creating its petrodollar system, this report explains, is shown by President John F. Kennedy, in the early 1960’s, attempting to break his nations military-industrial-complex’s “state of perpetual war”—and that allowed him to drastically reduce his nations national debt rise to only $23 billion bringing its total to $312 billion—but that he wasn’t able to continue due his public assassination in 1963.

Under Kennedy’s predecessor, President Lyndon Johnson, this report continues, the illegal Vietnam War was ramped up costing the American people, by 1969, $42 billion and bringing its national debt total to $354 billion.

Assuming power from President Johnson in 1969, this report further details, President Richard Nixon added another $121 billion to his nation’s debt for the illegal Vietnam War brining his nation’s national debt total to $475 billion—an amount so staggering for its time it caused what is now called the “Nixon Shock” when, on Friday, 13 August 1971, Nixon ordered the unilateral cancellation of the direct international convertibility of the US dollar to gold.

With Nixon having un-pegged the US dollar from gold in 1971, thus creating the petrodollar system to replace it, this report explains, the United States was given a literal license to print money—but that instead of using this money to improve the lives of the peoples of their country, instead, they have spent the past 4 decades rampaging across the world with their military might to create for themselves an empire—at a staggering cost, to date, of nearly $20 Trillion in national debt, with another nearly $106 Trillion in unfunded liabilities it owes to citizens.

In order to manage its vast, and global, money printing scheme once the US dollar was no longer backed by gold, this report says, the United States and its allies in Western Europe established, in 1973, what is now called the Society for Worldwide Interbank Financial Telecommunication (SWIFT)—that is messaging system connected to every bank in the world and transfers trillions of dollars every day.

As all global currencies are part of the petrodollar system, and whose currency values, also, are pegged to the US dollar, this report states, the SWIFT messaging system has been vital to health of the entire global economy—but that in 2012, for the first time in history, was used as a “weapon of war” against the Republic of Iran when the Obama regime ordered its disconnecting and that plunged this Persian nation into economic chaos.

With it being clear in 2012 that the United States was now using the SWIFT system as a “weapon of war”, this report explains, President Putin ordered that an alternative global banking be built—that is called the Financial Information Transmission Service (SPFS)—and that on 23 March, Central Bank of Russia (CBR) Governor Elvira Nabiullina reported: “There were threats that we can be disconnected from SWIFT. We have finished working on our own payment system, and if something happens, all operations in SWIFT format will work inside the country. We have created an alternative.”

The week prior to Governor Nabiullina announcing that the SPFS system was now operating as an alternative to SWIFT, this report says it’s important to note, the Central Bank of Russia, also, opened its first in history foreign branch in China—and whose combined goal with the Chinese is to now bypass the US dollar in the global monetary system.

Nearly immediately after the Central Bank of Russia announced that the SPFS was now operating, SC intelligence analysts in this report state, explosive reports began to emerge from leaked NSA documents showing that the United States was using the SWIFT system as a spying tool on both its allies and adversaries alike—and that prompted President Putin’s order today to begin implementing the “Golden Tsar” attack plan against the Americans.

The “Golden Tsar” attack plan against the US dollar, this report explains, is why President Putin has sold off nearly all of the US Treasury Bonds held by the Federation and replaced them with one of the largest hordes of gold ever accumulated by a nation—and that with China, likewise, accumulating massive amounts of gold, now prepares both nations to reinstitute trade in gold—instead of “candy wrapper” petrodollars.

To the greatest fears of the Western elites over the Russia-China plan to reestablish a global gold standard and un-peg their currencies from the failing US petrodollar via Russia’s new SPFS banking messaging system, this report notes, is that the largest global corporations will, no doubt, switch from the SWIFT system to SPFS too—and as one economist recently noted by stating: “If the US succeeds in bending SWIFT to their will, they’ll have to deal with the sharply negative attitudes of European business community, since businessmen never like politicians barging into their affairs in so unceremonious a fashion. Every major corporation would start wondering—‘are we next? What if Washington forces me to sacrifice my interests and my reputation?’”

As to the viability of President Putin’s “Golden Tsar” attack plan with the Chinese against the US petrodollar, this report concludes, one of the top economists with the Bitcoin News Service has noted the profound effects it will have on the whole world by stating: “If both countries could bypass the US Dollar altogether, their national currencies will remain stable or gain in value. Both nations have plenty of gold reserves, whereas the United States has slowly liquidated some of its gold assets. The world of finance will never be the same if these plans come to fruition; that much is certain.”

April 24, 2017 © EU and US all rights reserved. Permission to use this report in its entirety is granted under the condition it is linked back to its original source at WhatDoesItMean.Com. Freebase content licensed under CC-BY and GFDL.

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…of bank$ter$, government$, fine$ and the mulberry bush.


Here we go round the mulberry bush, the mulberry bush, the mulberry bush…

The bank$ loan money to governments so that the governments can govern.

If the governments default they’d be bankrupt.

The bank$ play dirty game$ and get caught with their finger$ in the jar.

The mother bank$, or the governments will punish and fine the naughty bank$

When the bank$ got into trouble the governments bail them out with the money the bank$ loaned them so that the bank$ could remain giving them loan$.

Can somebody tell me who created the mulberry bush??


ST

US Fed fines Deutsche Bank US$156.6m for forex violations

Deutsche Bank US


CNBC

7 years on from crisis, $150 billion in bank fines and penalties

cnbc

…and the list goes on round the mulberry bush.

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Universal debt forgiveness and the imminent global debt jubilee


Alcuin And Flutterby

You don’t need a slide rule, a set of log tables or a high frequency trading algorithm to see the light. Everyone on Main Street now knows that the Western banking cartel’s fixation with debt colonisation is a busted flush. Debt does not work as the basis of a global financial system.

Behind the scenes, all the indications are that universal debt forgiveness is set to be announced. A global debt jubilee is waiting in the wings. The Doctrine of Odious Debts has been spectacularly revisited. The default position of the global financial system is to be permanently reset. The vaults are stocked. The precious metals are audited. The new gold-backed regional currencies are printed, minted and ready.

The most recent catalyst for change has been Iraq. Before the Western cabal’s US-UK war of occupation and plunder began in Iraq in March 2003, Iraqi exiles expressed the hope that in a post-Saddam democratic Iraq, there would be a fair and equitable disposition of Saddam’s debts.

These Iraqis wanted the future administration of Iraq and the international community to review the debts accumulated under Saddam’s régime. Those loans which had been used for benign purposes should be restructured and paid back by Iraq over a prudent time period. Those loans which were used for objectionable purposes and which did nothing to enhance the well-being or prosperity of the Iraqi population at large, should be struck off the record immediately and completely.

This illustrates one of the core principles of debt forgiveness. Why should Iraqis be forced to repay the US, the British, the French, the Germans, the Russians, and all the others who had financially supported Saddam’s oppression of them?

The Iraqi argument for debt forgiveness had a sound basis in law. It reflects the century-old legal principle of the Doctrine of Odious Debts.

The Doctrine of Odious Debts was created to further international finance by limiting the ability of governments to repudiate debts. Three conditions had to apply before a sovereign state could repudiate a debt:

(1) The debt must have been incurred without the informed consent of the citizenry of the state.

(2) The debt must not have benefitted the citizenry of the state.

(3) The lender must have been aware of conditions (1) and (2) at the time that the loan papers were signed.

The United States employed these principles after the Spanish-American War to repudiate the Cuban debts.

If a despotic power incurs a debt which is manifestly not for the needs of the State, or not in the plain interest of the State, but is a debt incurred solely to strengthen the position of the despotic cabal as a self-serving faction within that State, the debt is odious. The debt is not an obligation for the nation; it is a cabal debt, a personal debt of the cabal which incurred it. And the debt falls with the fall of the cabal.

The Doctrine of Odious Debts not only promotes accountability, it promotes democracy in the debtor state as, one by one, the nature of the inherited debts are articulated in a public legislature.

The Doctrine of Odious Debts also promotes democracy in creditor states. In Canada and most European nations, the lending of state enterprises is generally hidden from taxpayers. Canada’s export credit agency, Export Development Canada, for example, is exempt from Canada’s Access to Information law.

In the case of Iraq, state agencies from France, Germany and Russia may have made questionable loans. Under an odious debt process, they would need to establish that they acted with due diligence to be entitled to repayment. Knowing this, they would be less likely to make questionable loans in the future.

Debt forgiveness and the Doctrine of Odious Debts also applies to individuals. The same principles have legal traction on loans or structured financial inducements made by financial institutions such as banks, mortgage lenders, insurance companies, stock-trading entities, energy conglomerates and pharmaceutical firms.

If the intention of the financial transaction tied to the loan, or tied to the financial inducement, is extortion, if it is, in effect, an élite scheme to bamboozle the borrower with small print or to blind him with science, that loan or inducement, should be struck off the record immediately and completely. The debt was not incurred with the informed consent of the borrower. The debt did not benefit the borrower. And the lender was well aware of these facts when the loan papers were signed.

Universal debt forgiveness is on the way as an essential precursor to the planet’s new gold-backed financial system. It has deep historical roots and powerful support in natural law. This imminent global debt jubilee is organically related to the disbursement of The World Global Settlement Funds, to the long-planned public NESARA announcements, and to the opening of Pandora’s Suitcase.

More background about the concept of the Odious Debt can be found here (pdf – 11 pages – Jayachandran and Kremer) and, in the specific context of Greece in 2011, here. Murray Rothbard’s original 2004 piece on Repudiating the US National Debt can be found here. And The Center for Global Development’s 2010 review entitled: “Whatever Happened to the Jubilee? A 10th Anniversary Assessment of the Debt Relief Movement” is linked here.

But other economists have been vocal on the debt forgiveness issue as well. In particular, Zeus Yiamouyiannis (plus here, here and here), Steve Keen (plus here) and Michael Hudson (plus here).

Citing both Keen and Hudson, Yiamouyiannis is persuasive. When debt is fraudulent, debt forgiveness is both the logical and the only remedy for the situation. Whatever the name you give to the process – erasure, repudiation, abolishment, cancellation, jubilee – debt forgiveness will eventually have to emerge at the forefront of global efforts to solve the ongoing systemic financial crisis.

The only way to erase counterfeit money and counterfeit assets amounting to hundreds of trillions of dollars is to erase the debts associated with these fake assets. They are not toxic assets. They are fake assets.

Debt forgiveness accomplishes two important things. First, it eliminates the increasing and outsized portion of productive enterprise which is being employed to pay off unproductive obligations. Second, it clears the ground for new opportunities, new thinking, creative invention and positive entrepreneurialism.

Stentorian calls for austerity are nothing more than the delusional efforts of a fraudulent bankster status quo to avoid the consequences of its own error and fraud. The élite demands for austerity are a self-serving effort to kick the profit-can down the road in perpetuity. So bedazzled by the false wealth created by debt multiplication and its concomitant fantasy of ever-higher returns, the fraudulent bankster status quo continues to be stupidly amazed that ordinary people in the street are not spending money, and that the national economy is not picking up.

Productive human wealth has been trapped by establishment banksters in a web of parasitic theft, counterfeiting, liability evasion, non-regulation, and prosecutorial non-accountability. All the fundamental attributes of a functioning exchange economy have been warped to reward creative criminals.

Fabricated or parasitic so-called “wealth” destroys value by diluting the value of real productive wealth. Debt or credit which cannot be paid back is never an asset; it is always a liability. That some people in the market can be fooled into buying such liabilities and thus generate sale profits and transaction fees is risible.

The operating models upon which the modern debt nexus is historically based have no organic contact with reality. They assume unlimited growth and an unlimited ability to pay. When matched against the reality of real people paying ten times their salary for mortgages, which actually add more money owed to their principal (with negative amortization), require no money down, and set up balloon payments – large step-ups in payments after a few years – there is no possible way such people could not default within a predictable timespan.

Systemically, all debt which charges a percentage originates in delusion. Debt grows exponentially indefinitely; income and other growth cannot do this. This leads to a widening condition where the fruits of productive growth devoted to interest payments increase until those fruits are entirely consumed. Once this happens, stores of wealth (hard assets) begin to be cannibalised to make up the difference. You can see this now in Middle America where, absurdly, people are having to liquidate their retirement accounts to pay for their current cost of living.

The problem is compounded by a privately owned Federal Reserve syndicate which lends money into circulation at interest, and then allows the multiplication of this consumer debt-money liability through fractional reserve banking.

The total amount of money in circulation today can pay for only a tiny fraction of the total private and public debt. This fact alone is evidence of a kind of systemic fraud. This is why debt forgiveness makes not only moral, but also rational and mathematical sense. Finances require balancing to be coherent. There has to be some way to redress the systemic imbalance in Western macrofinance. There has to be some way to zero the scales in order to get an accurate weight of value, and to re-establish healthy value creation.

The problem with debt is that it creates scarcity. Scarcity stimulates fear. Fear drives manic competition. And manic competition favors opportunism, collusion, and concentrations of power. These élite concentrations of power translate into establishment abuse. The inevitable result is a visible collapse of legitimacy within the economic system. This is what is being seen now, all over the Western World, by Joe Public and his missus.

Debt forgiveness recognises the inherent, systemic, mathematical inability to make good on debts, and (or) the naked fact that the debt itself was manufactured through fraudulent means.

The foregoing twelve paragraphs précis some of the ideas which Zeus Yiamouyiannis has suggested in his writing on debt forgiveness. The best brief summary of his thoughts is probably here (01.09.11).

The situation is plain. You cannot solve the debt problem by issuing more debt. You solve the debt problem by cancelling, completely, all national, corporate and personal debt. You do this simultaneously across the planet, and you do it permanently. And then you recapitalise the whole bangshoot using an established resource base such as The World Global Settlement Funds and the associated US Dollar Refunding Project.

This next bit sounds exotic. But in future years it may well sound like a blinding glimpse of the obvious. You don’t establish the value of something by sticking it in a market. You establish the value of something by giving it away free and seeing what social value accrues as that something is used locally to energise cooperative livelihoods and free barter.

Interestingly, the core idea of global debt forgiveness is not restricted to the benevolent ivory towers of economic utopians. It is beginning to be talked about, in public, by national parliamentarians.

At the end of August 2011, in Ireland, the Irish Finance Minister, Michael Noonan, had to respond to organised calls for debt forgiveness in connection with his EuroZone nation’s struggling mortgage borrowers. The story was run prominently in the Business section of the Irish Times on Friday 2nd September 2011. Its headline was: “Minister rules out ‘free-for-all’ debt forgiveness. Noonan insists there is no magic bullet.” The article, by Simon Carswell and Colm Keena, can be found here.

Read further….

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Bank of England Rigging #LIBOR – Gold Market Too?


GoldCore

  • Bank of England implicated in LIBOR scandal by BBC
  • “We’ve had some very serious pressure from the UK government and the Bank of England about pushing our Libors lower.”
  • “This goes much much higher than me” -UBS’ Tom Hayes
  • Libor distraction as all markets are manipulated today
  • Central bank’s “rigging” bond markets and likely gold
  • Risks of bank ‘holidays’, capital controls and of course bail-ins remains

The LIBOR scandal reemerged yesterday as the BBC’s Panorama uncovered a secret recording implicating the Bank of England in the interest rate manipulation saga.

According to the BBC the central bank pressured commercial banks during the 2008 financial crisis to lower their settings for LIBOR.

In a telephone recording, aired last night in the UK, a senior Barclays manager, Mark Dearlove, can be heard instructing Libor submitter Peter Johnson, to lower his rates.

Mr Johnson: “So I’ll push them below a realistic level of where I think I can get money?”

Mr Dearlove: “The fact of the matter is we’ve got the Bank of England, all sorts of people involved in the whole thing… I am as reluctant as you are… these guys have just turned around and said just do it.”

The Barclays submitter, Peter Johnson, who is featured in the phone call was jailed in 2016 after pleading guilty to accepting requests to manipulate LIBOR.

Previous assurances from the Bank of England that they were not involved in LIBOR fixing have now come under question again.

It has long been rumoured that the LIBOR fixing went higher than the banks and individuals that were originally implicated.

In 2012, a 2008 telephone note came to light which recorded a phone call between Paul Tucker, executive at the Bank of England at the time and Barclays’ boss Bob Diamond.

The note refers to what is apparently LIBOR not needing to be ‘so high’ as instructed.

The telephone note was taken on the same day that the Panorama aired phone call between Johnson and Dearlove, took place.

Despite the published telephone note, Bob Diamond told the Treasury Select Committee in 2012 that he had only recently became aware of the manipulations.

Chickens coming home to roost

Last week there were also new revelations in a newly published book by David Enrich, ‘The Spider Network’ in which Tom Hayes of UBS tells Enrich “This goes much much higher than me and a lot of what I know…”

Tom Hayes’ bosses were happy to accept his LIBOR fixing in exchange for higher commissions until the CFTC investigation came along. They promptly threw him under a bus and he rightly ended up in prison. However there was little implication for seniors at UBS and of course, the Bank of England.

It is amazing how many times junior employees seem to take the rap by themselves – as if there has been no instruction or oversight from their managers. In the banking world, the lone ‘rogue trader’ is a very common little beast indeed.

Hayes has repeatedly claimed that the real culprits are not the executors of the rigging but those higher up the chain who had instructions to do so.

As a result very little was done at the BOE following the fallout to LIBOR. Some staff quietly left their jobs but there were no charges brought against BOE employees.

By manipulating LIBOR, bankers (and seemingly central bankers) pushed up the cost of borrowing for ordinary people. LIBOR was not regulated in either the UK, US or anywhere else. This appears to be an almost line of defence for the Bank of England who only have to provide information on a voluntary basis to the Serious Fraud Office, as part of a new investigation.

Conclusion: Is LIBOR just a distraction?

Whoever was responsible for LIBOR, no-one is debating the fact that what went on was highly illegal and yet another example of financial institutions manipulating a market at the expense of investors and the public.

LIBOR should not have come as the surprise that it did. It took place in an environment that almost encouraged such behaviour. As we wrote back in 2012 ( LIBOR Manipulation Leads To Questions Regarding Gold Manipulation )

“A lack of transparency, a lack of enforcement of law and a compliant media which failed to ask the hard questions and do basic investigative journalism led to the price fixing continuing and the manipulation continuing unchecked on such a wide scale for so long.”

However, more scandals continue today. Not only have we had LIBOR but we see gold and silver manipulation, foreign exchange rate rigging, the London Whale scandal and money laundering assistance from big banks. Just to name a few.

There are others that are carried out in full public view and with the complete sanction of the press, regulators and the uninformed general public.

Today we have record low interest-rates (of which some are actually negative) as instructed by the Bank of England and other banks and governments around the world. This, combined with quantitative easing and other money creation policies, has prompted major stock market inflation.

In countries such as the UK we see the full-effect of low-interest rates and high levels of real inflation trickle down to the public in the form of house prices which are beyond affordable for the average earner, pushing them into further debt and a lifetime of mortgage repayments.

There are also property bubble in many major cities around the world and global debt levels continue to surge to astronomical levels sowing the seeds of the next financial crisis.

Central bank’s actual policies are to attempt to “rig” bond markets in order to keep bond prices high and interest rates low. This is seen in QE and how record low interest rates is supporting and arguably “rigging” or at least artificially boosting the stock market and the even more interest rate sensitive property market.

Given this policy to intervene in markets such as LIBOR and interest rate markets, is it not very likely that central banks may have been attempting to rig the gold market in recent years as alleged by the Gold Anti-Trust Action Committee (GATA)?

Banks have already been found guilty of rigging gold and silver and there is much evidence. However, the question is whether the central banks are using banks as proxies to push gold and silver prices lower.

The quotation from Eddie George of the BOE above strongly suggests this was the case and likely remains the case.

Artificially suppressing the prices of markets can work in the short term but in the long term it rarely works as the powerful forces of global supply and demand tend to overcome even the most determined interventions of central planners.

What does all this mean for those of us who are just trying to protect our wealth and own the financial insurance of gold and silver?

It underlines the continuing fragility and risks in the banking and the financial system where there is little transparency and little accountability.

It underlines the importance of fading out short term noise in markets in the form of frequent inexplicable concentrated selling of gold and silver futures prices. Market interventions that push prices lower in the short term despite no negative market news or deteriorating fundamentals.

It underlines the importance of not having all your wealth in the banking system where it may be subject to negative interest rates, bank ‘holidays’, capital controls and of course bail-ins.

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Cliff High – Fed Will Crash & Fed Is the Market


Greg Hunter

TWO TRIBES

TwoTribes2

Internet Data mining expert Clif High’s latest report says, ““The emotions at the moment are projecting a crash of the ability of the state to function. . . . We have the projection that there is going to be some sort of big government crash. It concerns funding, interruption or something. . . . We have something akin to a definition change relative to bonds. . . . One way to think about this is there is going to be a human collective or re-understanding, or new understanding, about the whole bond market as we go forward in August, September and October. This is going to cause huge disruptions for governments, which basically depends on the bonds as its source of funds. I don’t know what that definition is going to mean, but the way the language is presenting itself, it’s very much like the same language that appeared in newspapers ahead of the Bretton Woods conference. . . . At that time, a bunch of countries got together around WWII and talked about how to deal with gold, money and the dollar after the war was over. . . . We have that same kind of language now relative to the bonds. . . .This redefinition is going to cause real problems relative to governments. If I had to guess, I don’t think we will have a stock market crash, but a government crash or Fed crash or bank crash. I don’t think a stock market crash will be meaningful because by the time it crashes, nobody will care because before we get there, the Fed will crash. The Fed is the market.”

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Spain Sets Massive Precedent – Charges Its Central Bankers in Court


TheMillenniumReport

Claire Bernish

First, Iceland, and now Spain has taken on the Big Bankers responsible for financial calamity, as the country’s highest national court charged the former head of Spain’s central bank, a market regulator, and five other banking officials over a failed bank leading to the loss of millions of euros for smaller investors.

This, of course, markedly departs from the mammoth taxpayer giveaway — commonly referred to as the bailout — approved by the U.S. government ostensively to “save” the Big Banks and, albeit unstated, allow the enormous institutions to continue bilking customers without the slightest fear of penalty.

Errant bankers and financiers, it would seem, typically manage to either evade actually being charged, or escape hefty fines and time behind bars.

Spain’s Supreme Court last year ruled “serious inaccuracies” in information about the listing led investors to back Bankia in error, thus the bank has since paid out millions of euros in compensation.

But Spanish authorities could not abide the telling findings of a yearslong investigation into the failed listing, as Wolf Street explains,

“As part of the epic, multi-year criminal investigation into the doomed IPO of Spain’s frankenbank Bankia – which had been assembled from the festering corpses of seven already defunct saving banks – Spain’s national court called to testify six current and former directors of the Bank of Spain, including its former governor, Miguel Ángel Fernández Ordóñez, and its former deputy governor (and current head of the Bank of International Settlements’ Financial Stability Institute), Fernando Restoy. It also summoned for questioning Julio Segura, the former president of Spain’s financial markets regulator, the CNMV [National Securities Market Commission] (the Spanish equivalent of the SEC in the US).

“The six central bankers and one financial regulator stand accused of authorizing the public launch of Bankia in 2011 despite repeated warnings from the Bank of Spain’s own team of inspectors that the banking group was ‘unviable.’”

As AFP reports, “The National Court validated conclusions made by prosecutors who concluded that when ‘an unviable entity has been listed on the stock market, its administrators or auditor should not shoulder all the responsibility.’”

Specifics of the charges have not yet been made apparent, but as The Economist reports:

“The court is questioning why they allowed Bankia to sell shares in an initial public offering in 2011, less than a year before Bankia’s portfolio of bad mortgage loans forced the government to seize control of it. It said there was evidence the regulators had ‘full and thorough knowledge’ of Bankia’s plight. After its nationalisation, it went on to report a €19.2bn ($24.7bn) loss for 2012, the largest in Spanish corporate history.”

Internal emails and documents played a crucial role in ultimately bringing the central banking officials to task for the failure of Bankia — inspectors bringing issues to the attention of superiors were allegedly ignored. One email cited by the Economist came from an inspector who warned Bankia was “a money-losing machine,” for which an IPO would not solve.

Another report, deemed “devastating by the court,” saw an inspector advise Bankia to seek a private buyer rather than proceed with the listing.

An inquiry into “the participation of other players, such as officials in the central bank,” was also urged by the National Court.

As the Economist points out, Spanish judges are generally reluctant to sentence first-time financial criminals to prison; though five Novacaixagalicia executives had five-year suspended sentences — levied for embezzlement in 2015 — abruptly enforced in January.

Meanwhile, taxpayers in the United States have yet to see Big Bankers criminally responsible for the financial ruin of so many Americans brought to any semblance of justice for their wrongdoing.

 

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