Too Big To Jail
Jeffrey Epstein couldn't have done it without America's biggest banks, a new lawsuit alleges. Watch them settle quietly and move on.
This Week In Blunders – Oct. 12-18
“This is a Democrat hoax that never ends.” – Donald Trump
Bank of New York Mellon’s slogan: “Consider everything.”
Bank of America’s slogan: “What would you like the power to do?”
Jeffrey Epstein’s answer: “I’d like to run a global sex trafficking network to service the rich and powerful, and pleasure myself with three or four young girls a day.”
Some of Epstein’s victims filed federal lawsuits against the two banks on Wednesday alleging this notorious sicko could not have pulled off his despicable crimes without them.
(The Wall Street Journal reported it first. Here’s a free story from the New York Post. And see links to complaints below.)
According to the complaint filed against BOA:
“Bank of America went far beyond what a non-complicit bank would have done and instead assisted Epstein in setting up the necessary financial structure to operate his sex-trafficking venture.”
According to the complaint filed against BNY Mellon:
“BNY cared about one thing—profit—and showed absolute loyalty to Epstein, including a willingness to violate banking laws, ignore multiple red flags of criminality, and participate directly in sex trafficking to enable Epstein to fulfill his abusive sexual appetite at the expense of countless vulnerable young women.”
Both banks declined to comment on the allegations. Other giant banks have already settled similar claims.
JPMorgan agreed to pay $290 million to victims, and Deutsche Bank agreed to shell out $75 million. Neither bank admitted wrongdoing.
If you would like to close your accounts at any of these banks in disgust, you may have to settle for a small community bank or a credit union. The Wall Street Journal reported that Congress has a list of more than 20 banks that held accounts for Epstein and his related entities, as well as several hedge funds. They’re everywhere.
The victims behind these lawsuits fear retaliation from powerful people and have filed as Jane Doe. Their allegations are as horrible as they are familiar.
The suit against BOA reads:
“Epstein sexually abused Jane Doe on at least 100 occasions, including but not limited to, forcibly touching her, forcibly raping her, and forcing her to engage in sexual acts with other women for his own depraved sexual gratification.”
The suit against BNY reads:
“Once in Epstein’s clutches, each victim was taught and understood that she must be completely compliant with every demand Epstein had for her; otherwise, she would certainly suffer serious reputational, financial, and psychological harm. By using these and other means of force, threats of force, fraud, threats of abuse of the legal process and coercion, Epstein and his co-conspirators sexually trafficked and sexually abused Jane Doe and the other members of the Class.
Bankers proved too big to jail following the obvious crimes that led to the 2008 financial crisis. So what are a few vocal sexual assault victims to an uber class that nearly brought the global financial system to complete ruin?
The latest lawsuits will most likely be settled as quietly as possible to limit reputational damage – like the rest of them. The banks will move on. The coverup will continue from the White House on down.
But the case is not a hoax and it won’t go away. This week Prince Andrew gave up his royal titles as a result of the accusations against him.
Intense public curiosity and the persistence of justice-seeking victims will continue to surface fresh allegations. This isn’t a Democrat issue or a Republican issue. It’s a justice issue.
Powerful people complicit in this case may not feel any sense of guilt, but at least they’ll have to worry for years to come.
Related Reading From Business Blunders:
Near Intelligence On Epstein Island
Those cockroach bankers are at it again
History began to repeat itself this week with major banks reporting bad loans.
Zions Bank, Western Alliance Bank and the investment bank Jefferies disclosed their most recent bad moves, sending their stocks falling sharply.
As highlighted earlier this week in Business Blunders, Jeffries has hundreds of millions of exposure to a really stupid play in the auto parts business. Other banks also share in the blunder, and their bad loans are piling up.
“When you see one cockroach, there are probably more,” said JPMorgan Chase CEO Jamie Dimon said Tuesday.
Stocks tumbled on Thursday over these concerns but investors were quick to move past them on Friday.
The cockroach theory, however, will not be so easily dismissed. Recall that the 2008 financial crisis began with subprime auto loans. And guess what? Auto loan delinquencies are up 50% since 2010, according to a report from VantageScore on Friday.
“The auto market is a bellwether for household financial health,” the report notes. “A sustained climb in auto delinquencies signals deeper affordability challenges across the consumer economy.”
Dimon didn’t invent the cockroach theory, but as head of the nation’s largest bank, he has a very bright flashlight.
Down and out in Beverly Hills
Who is responsible for homelessness? Sometimes it’s a handful of shameless developers and home flippers.
On Thursday, the Feds charged two Los Angeles-area men, alleging that they fraudulently got their mitts on public funds meant to address homelessness.
The cases are just the beginning of an effort to track billions of dollars in public funding meant to combat homelessness, said Acting U.S. Attorney Bill Essayli.
Developer Cody Holmes, 31, of Beverly Hills allegedly used fake bank records to receive nearly $26 million from the California Department of Housing and Community Development .
Home flipper Steven Taylor, 44, of Brentwood, allegedly used fake bank records to obtain millions in loans and lines of credit. Then he flipped a multimillion-dollar property to a homeless housing developer for more than double his original purchase.
“Defendants took advantage of funds allocated to assist the homeless, some of the most vulnerable people in society and many of whom may be suffering from myriad conditions, including addiction,” said Akil Davis, the Assistant Director of the FBI’s Los Angeles Field Office.
If convicted, both defendants could receive decades in public housing for themselves.
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Greedy bankers being greedy. They will never change. But another piece of the story today is the fintechs they are backing much like the investment vehicles in the 2008 crisis. Check this out to learn more:
https://open.substack.com/pub/thebizfundguru/p/greed-breeding-disaster-the-new-2008?r=6nh7rf&utm_medium=ios
Corporations are to be treated like people when making political contributions but people are treated like faceless corporations when they commit lawless acts. Got it. Until real people are held accountable (which I’m not holding my breath for), nothing changes. And the fish stinks at the head.
Thanks for your writings!!