The Stanford case is a fraud because.... 1) The underlying investments were not representative of those which met regulatory standards.... 2) Interest payments were made from fresh funds ie a ponzi scheme ? And the largest US banks did not do the same ? Money is fungible.... .................................................................................. The bottom line ? The majority of US Banks have perpetrated a complex grand fraud against all depositors.... Or I suppose the 30:1 leverage of CCC instruments is an "ok" practice with trusted depositors funds ? And I suppose "fiduciary responsibility" and "suitability" are just passing fads ? ................................................................................. It can easily be argued that the largest US banks have participated in the grandest fraud "ponzi" scheme of all time.... And what does the US govt do ? Grants them $Trillions more ? .................................................................................. Hello ? Anybody home ? .................................................................................. No bank can endure a "run on the bank ".... ........................................................................... Both too big to fail.... And too big to jail....
Agree, banks are ponzis. However gov't gives them LOANS, not gifts. Of course some banks will never be able to repay. Wait, I said "some banks"? Maybe I should say "most banks" :eek: