A modest proposal for Wall Street's future


Michael "Flash Boys" Lewis gives us a wish-list of eight (implausible) steps that Wall Street could take to check its feckless, reckless, destructive lurch through the 21st century.

Read the rest

IBM's banking security software demands the right to spy on you


IBM's Trusteer Rapport is a security package that many banks recommend to their customers -- but its latest license agreement includes this gem:

Read the rest

Wall Street phishers show how dangerous good syntax and a good pitch can be


Major Wall Street institutions were cracked wide open by a phishing scam from FIN4, a hacker group that, unlike its competition, can write convincingly and employs some basic smarts about why people open attachments.

Read the rest

Chicago schools lost $100M by letting Wall Street engineer their finances


In 2007, the school raised $1B, and instead of issuing bonds, it let the bankers who'd been courting it talk it into issuing a floating-rate bond that it swapped into a fixed-rate issue.

Read the rest

Chip-and-PIN cards let nearby fraudsters steal $1M at a time

Visa's new Paywave chip-and-PIN credit-cards have a $1M limit on foreign-currency transactions that can be verified "in-card," meaning that someone who gets close enough to your UK wallet can simply wave a phone at it and charge a megabuck to it without raising any realtime security alerts.

Read the rest

Payday loans for kids


Pocket Money Loans is the latest from prankster/artist Darren Cullen (previously), offering 5000% APR loans to children so that they can "get out of debt with a loan" and "spend each day like it's your last."

Read the rest

What's financialism, and how is it destroying your life?

As businesses start retaining and investing larger cash-reserves, they're turning into banks. Banks, meanwhile, need to find another line of work: they become asset traders. Meanwhile, your wages have been stagnant for decades, which means that in order to survive, you must become a debtor.

Read the rest

American businesses devour themselves to enrich the 1%


A Goldman Sachs report on stock buybacks shows a suspicious clustering in the fourth quarter, just when management bonuses are being calculated.

Read the rest

Why the UK middle class should be rioting in the streets


Alex Proud, a lifestyle columnist for the right-of-centre UK daily The Telegraph, has an incendiary and essential column about the end-game of financialized capitalism, which, having destroyed the lives of working class people, has now set its sights on the middle class, as private equity firms buy up productive businesses, saddle them with debt, cash out huge dividends, and leave the businesses to collapse.

Read the rest

Finance industry profiteers exploit prisoners' families


Companies like Jpay lobby hard to be the exclusive conduit for remittances from prisoners' families to the inmates, taking a huge rake off the top of funds sent to pay for essentials like warm clothes, medical care and food.

Read the rest

Skinner-box rats trained to predict currency market movements


Viennese artist Michael Marcovici's Rat Traders uses reward, punishment and selective breeding to create a strain of lab-rat that can predict the movement of international currency markets.

Read the rest

Fed whistleblower secretly recorded 46 hours of regulatory capture inside Goldman Sachs

Carmen Segarra is a former FTC regulator who joined the fed after the financial crisis to help rescue the banking system -- but she was so shocked by the naked regulatory capture on display that she ended up buying a covert recorder from a "spy shop" and used it to secretly record her colleagues letting Goldman Sachs get away with pretty much anything it wanted to do.

Read the rest

Eric Holder: creator of the "Too Big to Jail" bankster


While you contemplate Eric Holder's track record of surveilling, intimidating and indicting journalists, remember that he also invented the Too Big to Jail doctrine, the failed idea that the answer to breathtaking criminal activity by gigantic banks is big fines, not criminal prosecutions.

Read the rest

Class war meets the War on General Purpose Computers


The subprime auto-lending business -- writing car-loans to people who can't afford them -- is fuelled by GPS-enabled immobilizers that let lenders track and shut down cars whose drivers violate terms of service, from missing payments to fleeing the tri-county area in order to move into a shelter for abused women.

Read the rest

Elizabeth Warren asks why criminal bankers are too big to jail

There were 800 convictions in the S&L crisis, but the DOJ hasn't prosecuted a single banker involved in the financial crisis; as Matt Taibbi points out in the brilliant, essential book The Divide, if shutting down a huge bank would impose too many costs on society, then why don't prosecutors insist that the banks be split up as a condition of not dropping the entire C-suite into the deepest dungeon in the nation?

Read the rest