Banking Cartel Part 2 (FREAKY Truth About The Biggest Global Financial Titans)

Posted 2 hours ago | by Catoshi Nakamoto

The titans of traditional finance have maintained their positions at the top through decades of fraud and manipulation, which is why the transparency and decentralization that crypto offers is such a massive threat to these big players. This is why they are now trying as hard as they can to push for regulation of the industry so they can keep their cartel strong in the new era of finance.

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In this video we’re going to continue our series on the incumbent financial cartel with a deep dive into State Street, one of the longest-standing financial institutions in the United States.

State Street is a continuation of Union Bank, which was founded all the way back in 1792. It is the one of the largest custodian banks in the world, running a very close second to the largest BNY Mellon. In 1993, State Street launched the first ever ETF, the SPDR S&P 500 Trust, and it remains one of the largest ETF providers in the world today.

This firm is so influential that the entire world’s economy is dependent on its stability, or at least that’s what the international Financial Stability Board says, who has labeled the bank as “too big to fail.”

This perception of the bank being “too big to fail” is why it was one of the firms that received billions of dollars in bailout funding from the United States government during the financial crisis of 2008. State Street alone received $2 billion as part of a $700 billion bailout package which essentially rewarded the banks that were responsible for the crisis in the first place. Even the SEC later ruled that State Street lied to its customers and investors about its exposure to the risky subprime mortgages that sparked the crisis, but it still didn’t face any serious consequences.

However, in the wake of the financial crisis of 2008, State Street and other members of the OldFi cartel have become major sources of controversy, as the world starts to pay more attention to the proverbial “man behind the curtain.” The crimes of these firms likely go all the way back to their founding days, but it was much easier for them to get away with robbing the public before the internet came along. This might be why most of the major cases against the firm started to roll in around the turn of the new millennium. The public was also paying much closer attention to what financial institutions were doing after the economic challenges of 2008, because the bailouts provoked so much anger across the entire political spectrum. This event was responsible for the rise of both Occupy Wall Street and the Tea Party, two protest movements on opposite sides of the aisle that were both trying to express the same frustrations.

Shortly after the bailouts occurred, some very serious cases were filed against State Street. The following year, in 2009, the firm was accused of defrauding pension funds in the state of California. A lawsuit said that between 2001 and 2009, State Street defrauded the pensions of teachers and other public employees. The firm eventually settled with the SEC in 2016, and was forced to pay hundreds of millions of dollars as a part of a private class action lawsuit.

Then in 2011, two executives from State Street Global Markets were forced to resign from their positions after they were accused of securities fraud and wire fraud after years of skimming off the top of their customer’s portfolios. It took 5 years before they were formally charged by the US Department of Justice, and then another 2 year legal battle before they were finally convicted.

Over the years, the allegations of fraud and market manipulation have started to pile up against State Street, and like many other traditional firms, it has been going to great lengths to clean up its reputation. These big players in traditional finance have been positioning themselves as defenders of the environment who are fighting for equality. As we discussed in our previous video about Blackrock, this hypocritical public posturing is a calculated business strategy, not a genuine desire to improve society. They understand that the culture is shifting in a way where people are starting to seriously consider the social impacts that companies have, so instead of being the targets who are under a microscope, these firms are seeking to be in charge of deciding who the bad guys are, which effectively makes them above the law.

After claiming to grab the high ground in debates about social impact, firms like State Street have been going on the offensive and using ESG concerns as an excuse to maintain their stranglehold on the markets. As we discussed in previous Videos, ESG stands for Environmental, Social and Governance. This is a term that is used to classify investments based on their social and environmental impacts. Take a look at our breakdown of the FUD around Bitcoin here BUT before you do that, go ahead and smash that like and subscribe button, it really helps us out and tells us that you like this type of content.

We all know that big time Wall Street firms are not making the world a better place in any of these areas, but they are too big to fail and too big to jail, so they continue to rule the markets. Some analysts have called the current situation “a growing threat to shareholder democracy,” because the outsized portfolios of the financial cartel also give them an outsized share of the voting rights that push ESG proposals forward. While many involved with the ESG have very positive goals that most of us can agree with, the framework is being taken over by some of the most powerful organizations on the planet, and even the environmentalists who are active in the ESG movement have become wary of influence from these financial institutions.

Knowing that State Street and other members of the traditional financial cartel have such strong influence over the ESG narrative, it’s easy to see how they could use this as a weapon to fight against one of their biggest rivals, the growing crypto industry. It seems like this has already begun, with Bitcoin’s proof of work mining algorithm becoming the central point of criticism. Many of these firms are telling the press that they won’t make major investments in Bitcoin unless significant changes are made to reduce its energy use.

But, let’s be real, State Street and the rest of Wall Street could care less about energy use or environmental impact, just look at their other investments. They have not cut off investments to any energy companies during all this controversy, and they haven’t stopped backing projects that devastate ecosystems to extract minerals and other valuable resources. So why are they singling out Bitcoin for criticism, while conveniently overlooking these other companies in their portfolio. Well I think the answer to that should be obvious. Comment below with a financial firm YOU think we should look in to next.

But that’s all I got. Be blessed. Bitboy out.

Source: https://thebittimes.com/banking-cartel-part-2-freaky-truth-about-the-biggest-global-financial-titans-tbt11045.html?utm_source=blogger_source&utm_medium=blogger_medium&utm_campaign=blogger_cam

Category: Cryptocurrency News

Post by: TheBitTimes.com