If Bribery Is Illegal Everywhere...

...why aren't Goldman and the other major banks involved under indictment?

by Karl Denninger market-ticker.org
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MUMBAI: Institutional investors who subscribed to the qualified institutional placement (QIP) of Money Matters Financial Services are unlikely to recover their investment in the debt syndication company anytime soon, say investment bankers .

Rajesh Sharma, CMD of Money Matters, was arrested by the CBI on Wednesday for allegedly bribing bank officials to get loans sanctioned for some developers. E-mail queries to Fidelity, GMO, Goldman Sachs did not elicit any response, while Morgan Stanley said it “did not comment on market transactions”. Investors also vented their fury on shares of IIFL, the broking firm which had arranged the QIP. The IIFL stock crashed 14% to close at .Rs 92.55.

Let me guess? "Unexpected" and "we didn't know"?

Uh huh.

Again, if you're engaged in some sort of organized felonious conduct in concert with other people, the common word for that is "Racketeering."

For how much longer will not only we but other nations allow these international banks to participate in these schemes, make god-awful amounts of money, and yet not suffer the consequences?

Oh sure, they bust a few people involved. But the institutions make billions from these schemes and they keep the money that these "few people" siphoned off!

Remember that this crap is largely responsible for the India property bubble-pricing nonsense - just like it was over here in America, in Ireland, and everywhere else! The banks may have put together different sorts of schemes in different places but the central point of the scheme doesn't change - it's all about finding some way - any way - to create a false belief of value in real estate, which then drives leverage and profits - right up until the falsehood (and fraud) is exposed, at which point it crashes and the suckers (ordinary people) lose everything while the banksters run off with the loot.

This has to stop - and India needs to, in this case, level an indictment at these "funding banks" that bought "investments" and both seize executives and charge them or better, bar these institutions from doing business in their nation and seize every asset of theirs they can find.