This is too much money to comprehend. This is not 1.5 trillion but a Quadrillion dollar scandal! To get your head around it, you could spend 1 million dollars from the time Jesus Christ was born until today and not have spent 1 Trillion dollars. Here is an image of what 1 trillion dollars looks like, now imagine 1000 trillion dollars and then another 500 trillion and you get the scope of this amount of theft!
Now remember, the Pentagon admitted to losing 2 trillion dollars the day before 9/11 happened. That killed that story. Need more images?
THIS IS 1 QUADRILLION DOLLARS
1.5 QUADRLLION DOLLAR STORM: EU accuses 13 banks of DERIVATIVES COLLUSION…CITI,GOLDMAN SACHS,BARCLAYS,HSBC,JP MORGAN RBS…ALL OF THEM
Collusion is an agreement between two or more parties, sometimes illegal and therefore secretive, to limit open competition by deceiving, misleading, or defrauding others of their legal rights, or to obtain an objective forbidden by law typically by defrauding or gaining an unfair advantage. It is an agreement among firms or individuals to divide a market, set prices, limit production or limit opportunities. It can involve “wage fixing, kickbacks, or misrepresenting the independence of the relationship between the colluding parties”. In legal terms, all acts affected by collusion are considered void
The European Commission said on Monday it suspected that 13 top investment banks including Barclays, Deutsche Bank and Goldman Sachs, colluded over derivatives trading in breach of EU antitrust rules.
A preliminary investigation showed that banks colluded to exclude exchanges from the over-the-counter market because they feared involvement by the exchanges “would have reduced their revenues from acting as intermediaries,” the Commission said.
The banks instead allegedly continued over-the-counter trading in the massive credit default swaps (CDS) market between 2006 and 2009 — an opaque business that was seen as contributing to the global financial crisis, the Commission said in a statement.
The EU’s Competition Commissioner Joaquin Almunia said the banks would now have the chance to respond to the accusations, and that if the charges were confirmed once the investigation was completed they could face fines.
“If it is confirmed that banks collectively blocked exchanges from the derivatives market, the Commission could decide to impose sanctions,” Almunia said at a press briefing.
“Exchange trading of credit derivatives improves market transparency and stability,” he said, adding that collusion between the banks to prevent this type of trading would be “a serious breach of our competition rules”. MORE
Huffpo puts it like this:
BRUSSELS — The European Commission says many of the world’s largest investment banks appear to have colluded to block attempts by exchanges to trade and offer more transparent prices for financial products known as credit derivatives.
The commission, the executive arm of the European Union, said Monday it has informed 13 banks – including Citigroup, Goldman Sachs, JPMorgan and Morgan Stanley – as well as the industry association for derivatives itself, the International Swaps and Derivatives Association, ISDA, of the preliminary conclusions of an investigation that began in March.
The Commissioner for competition policy, Joaquin Almunia, told reporters in Brussels that Deutsche Boerse and the Chicago Mercantile Exchange tried to break into the credit derivatives business between 2006 and 2009.
But “the banks acted collectively to prevent this from happening…because they feared it would reduce their revenues.”
He said the banks will now have a chance to respond, but if the commission’s suspicions are confirmed it “would constitute a serious breach of our competition rules.”
The commission’s investigation focuses on credit default swaps, often known simply as CDS contracts, which are essentially insurance that pays out when a company or country fails to honor a debt.
Indicating the size of the potential market distortion, Almunia said that at the moment there are 2 million such contracts outstanding, with a notational value of 10 trillion euros ($13 trillion).
The big banks have historically traded these contracts “over the counter” – that is, among themselves, releasing little information about trading prices to others who want to buy or sell them. MORE