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July 8, 2020 · 02:56

Casing the BS

I get it at times, as, I reckon a lot of others, the case when we read something, we are driven (whether justified or not) to the thought that we are getting fed a case of utter bullshit. Now, this comes from a BBC article and the state I am in is not reflecting on the writer of the article, or the BBC, but in light of all this, the grub smells too foul to accept.

So it all started with ‘Deutsche Bank faces $150m fine for Jeffrey Epstein ties’, So, in light of all we have seen in the last few days and in light of what CNN revealed we see “Deutsche Bank has been hit with a $150m fine for failing to properly monitor its relationship with convicted sex offender Jeffrey Epstein”. And it goes downhill from there. In light of the last few days we need to set a proper timeline. Joker JE died on August 10th 2019, he got planted (was buried) after that and the cases we are seeing is the one he did 13 months for in 2008 and he was arrested again on July 2019. So, when we see “the bank had suffered ‘significant compliance failures’, processing hundreds of transactions for the late financier”, we see the quote and we see the hiding of damage, but the largest failure is with the both the regulators and the people scanning all this, for the mere reason that Epstein had a cleared path for well over 10 years, the entire Maxwell situation, and her financial tracks as CNN discovered it gives rise to a lot more. I wonder who checked EVERY account and transaction here, more important, who approved the creation of these accounts and who monitored certain stages of hiding funds, when we consider that these people are optionally equally guilty of endangering of lives of hundreds of children. You missed that part did you not?

So when DB comes with the excuse “It had spend almost $1bn to improve its training and controls and expand its anti-financial crime team to more than 1,500 people”, I wonder who investigated the exact amounts that added up to $1bn, I reckon that the spin people at DB earned their keep that day. How much was exactly spend on training? How much on procedures to identify wealthy people spending money on underaged vagina’s? I reckon that we will hear that this is not the banks job, but the CNN facts giving us “Prosecutors also detailed transfers they said Maxwell made between her own accounts. Since 2016, prosecutors say, Maxwell has held more than 15 bank accounts that have totalled between several hundred thousand dollars and more than $20 million. During that time period and as recently as 2019, prosecutors allege she moved hundreds of thousands of dollars at a time between her accounts: In March 2019, $500,000 from one of her accounts to another; four months later, more than $300,000 from one account to another. As recently as last year, prosecutors say she held at least one foreign bank account containing more than $1 million.” I wonder how many accounts were created by DB, in addition, when we look at the accounts and we see who and where each and every account was made, we might see an additional picture emerge. So why were regulators so eager to get this settled for DB now, instead of when we see the court case finalise with several, questions answered, I reckon that the friends of these regulators are not that eager to see certain revelations in court, the cost could be a lot higher than $150m. Yet, that is merely my point of view of the matter. I wonder what else Shan Wu (the CNN analyst) is optionally sitting on.

The BBC also gives us “In an internal memo, Deutsche Bank chief executive Christian Sewing said it had been a “critical mistake” to accept Epstein as a client and acknowledged past lapses in the lender’s oversight. “We all have to help ensure that this kind of thing does not happen again,” he said.” So when did this happen, and when we look at the 2008 case and a few other matters, would it be inappropriate to ask whether Christian Sewing has any daughters? Is anyone else interested in the date of the internal memo #JustAsking?

Yet I digress from the one part that is revealing “We acknowledge our error of onboarding Epstein in 2013 and the weaknesses in our processes, and have learnt from our mistakes and shortcomings,” as such there were 6.5 years for damage to continue and in all this we see no revelation regarding how much shuffling was done for Ghislaine Maxwell. I do understand that the accused has rights to privacy, I get that there are laws and they should not be broken, yet the Deutsche Bank has broken compliance again and again and they can make a lot more than the $150m fine in mere hours. As such, will kids ever be safe again with banks the way they are in America, or is that the right setting? Deutsche Bank is global, so how many kids are in danger?

So I wonder, when someone investigates all these accounts that Ghislaine Maxwell was using, when we take transaction after transaction apart and check every terminal this went through, what else will we find, and if the Deutsche Bank is found in error of compliance again, will regulators set proper fines and limitations to banks involved, or will we see a half baked notification in the news with the added message ‘Oops!’ Just asking what is coming our way, and in my case it is not that drastic, yet there are plenty of mama’s and papa’s around to feel slightly different and a lot more stressed.

Is it progress?

We have at times a fair feeling of what costs are required in any business, we are at times a little off, we are at times a little bemused, but what is the feeling that people got two days ago when the Financial Times gave us ‘Europe’s banks slash 60,000 jobs as outlook turns negative‘? The story (at https://www.ft.com/content/e17ee0f2-183b-11ea-9ee4-11f260415385) seems to hand over another part of a story, but not the one that is out in the lighters. When we are confronted with ‘European bosses have been left with little option but to slash tens of thousands more jobs to try to address their chronically poor profitability‘, we might think that banks are unprofitable, yet the entire debt issues seemingly takes that out of the equation. When you look around in your area, are there more banks or less banks? There is another side, any debt driven errors and system malfunctions are now clearly in the hands of the banks, this means that THEY must give rise to repairs, to paying for the issues at hand and they are not allowed to pass these costs onto the customers. You see 60,000 jobs are ‘suddenly’ regarded as ‘poor profitability‘. It seems that the data dimensionality of banks is almost literally set to ‘profit through inactions‘ and as such they must pay for the blowback because inaction is never a cause of non stop profit.

So when we see: “lenders across Germany, UK, France, Spain and Switzerland have collectively announced more than 60,000 jobs cuts this year” and we investigate the stage, we would come to very different conclusions. Yet the picture is not that clear, the graphics that the article show, an image that include those trading below book value and those above book value gives a different picture, it shows a remarkable group of European and Rest of World banks trading below book value, so they are trading at a loss, which is of course debatable at the best of times. In that group we find ING, HSBC, Deutsche bank, Santander and a few others, the question becomes, why were they allowed to trade below book values in the first place? and it opens up a can of worms on several sides. As such we see a repetition of the Dutch bad bank issues when we are confronted with “resulting in 18,000 job losses and the creation of a new “bad bank” to dispose of €288bn of unwanted assets” Yet what happened to the commissions of hundreds of staff members as close to a third of a trillion is not returned? We merely see banks that wanted to look good whilst there was no reason to see them as good, so as such “chief executive Christian Sewing announced a retreat from investment banking over the summer, resulting in 18,000 job losses” makes me wonder about the levels of stupidity allowed at Deutsche Banks, does that not count for you? I wonder if we get an article on just how much the bunglings of Christian Sewing got him paid, in base income and bonuses. The fact that Deutsche Bank is losing one in five jobs is a larger issue, the idea that one in five jobs are lost in a bank shows that they have been playing the numbers and in all this europe will see another wave of bank responsibility whilst it is done AFTER the fact, so why was the EU not on top of this? And people complain about me mentioning the entire EU gravy train, I reckon that this example should set the straight, the EU have been facilitating to a much larger degree and the taxpayer gets to pay the bill, or did you think that shoving ‘a new “bad bank” to dispose of €288bn of unwanted assets‘ was done for corporate responsibilities.

It gets to be a lot worse, Moody’s which does not have the greatest reputation when we look at financial meltdowns is stated to have said “Moody’s, which this week changed its outlook for global banks to negative from stable, warns that the “profitability gap between euro-area banks and global peers will widen further” in the medium term despite the large headcount reductions” yet when we mull over the numbers (Deutsche Bank with one in five jobs lost) gives out a whole different stage when we are confronted with “this week changed its outlook for global banks to negative from stable“, all whilst the numbers show that this was a flaw in the making, months in the making, as such it makes Moody’s a joke, not a reporting entity.

So all in al it is not consolidation, but a lack of oversight that is causing additional pain to the industry, I wonder how long it will take the other newspapers to catch on, and this is not limited to banks, this will take on a larger role all over Europe. Yet the gravy train will ignore the pains and it will support its own interests through recommendations.

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