In terms of their profits, fraud is the dominant business model of investment banks. Today they are still being allowed to pay cost-of-business-fines and continue. And we the people, keep paying a crushing price in capital losses and deficits in our most critical institutions and expenditures. This latest story is more of the same, the State of California is trying to go after Morgan Stanley for financial damages for the 2008 losses. See: CA sues Morgan Stanley over public pension funds.
The State of California has sued investment bank Morgan Stanley, filing a complaint in San Francisco Superior Court, seeking redress for what officials said was massive harm to its public-sector workers.
“Public employees in California, including peace officers, firefighters, teachers, and other public servants, suffered major losses as a result of Morgan Stanley’s residential mortgage-backed securities, in which high-risk home loans were purchased from subprime lenders, bundled together and sold for billions of dollars to investors,” the complaint alleges, according to CBS San Francisco.
The nauseating reality here is that as one of the big 5 US investment banks, Morgan Stanley (thanks to the removal of Glass Steagall and regulatory forbearance since) still commands FDIC underwriting for its reckless risk taking with client deposits in 2016. So not only have they been granted a license to continue abusing trust and selling toxic products as ‘investments’ but they get to retain their proceeds of fraud and have the insurance of taxpayer bailouts when they blow themselves up again.
For the big banks it is a brilliant business indeed. For the rest of the population who keep paying and tolerating this while taking financial ‘advice’ from the cartel, Stockholm Syndrome must be real.