The cover story on this week's The Economist is Save the City, a love-note to London's legendarily corrupt, self-governing financial district, ground zero of the global financial collapse, and home to some of the world's top-compensated crooks, whose pay is totally disconnected from their performance.
Naked Capitalism rounds up a ton of online reaction to this puff-piece:
Yes, the City did once fulfil the function of efficiently allocating capital, but that stopped some ten to 20 years ago when the ‘zero sum’ game of financial speculation for the self-enrichment of the participants took over.
As I have said before the City has, with a few exceptions, become the cuckoo in the nest of the UK economy.
It has become gigantic skimming machine/casino. In addition to making taxpayer-underwritten bets, however absurd, it largely serves to diminish the savings and pensions of UK citizens, though outrageous fees, spurious and unwarranted trading and an intermediated structure that favours the interests of the people that work in its own, often-conflicted institutions (plus the people in their various suppliers including brokerages, law firms, accountancy firms, investment and actuarial consultancies, etc, etc) over and above the long-term interests of savers and the needs of the wider economy.
Ian Fraser: The Economist Loses the Plot With This Shallow, Pro-City Propaganda
Following from Wells Fargo’s 2,000,000-account fraud against its own customers — part of a decade-old pattern — the state of California has imposed sanctions on the bank, freezing it out of bond issues, brokerage business, and suspending all investment in Wells Fargo-issued securities.
Wells Fargo’s Board of Directors have finally exercised their right to claw back part of the hundreds of millions of dollars taken home by two senior executives who were compensated on the basis of the fraudulent earnings the bank took in while opening 2,000,000 secret accounts in their customers’ names, taking money out of those […]
When four named whistleblowers came forward to reveal that they’d been illegally fired from Wells Fargo for reporting that the company was experiencing widespread fraud, it was deja vu all over again: Wells also punished whistleblowers who sounded the alarm during the subprime crisis, and was thus so totally compromised that they needed a $36B […]
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When you’ve had a long day and it’s time to unwind, there’s a lot you can do to relax: drink some tea, take a shower or even read a book. But there’s one thing that’s essential to a comfortable night’s rest—and that’s investing in some really good sheets. Enter Bamboo Bed Sheets. These quality sheets retail for $120, but […]