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News ::
Banking Fraud in Argentina
09 Aug 2002
Is banking fraud in Argentina committed by American banks, or by the entire transnational political-financial system?
Is banking fraud in Argentina committed by American banks, or by the entire transnational political-financial system?

As exposed by numerous REAL economists, all banks employing the "hidden" theft of fractional-reserve banking and usury (charging interest on non-renewable commodities, including debt) are committing massive fraud upon everyone but banksters.

Even most taxes, at least in the USA, are just another fraud committed by private, monopolistic, transnational banks upon citizens:

As I've said before, "We are all Argentinians." Until we correct the dysfunctional financial system.

Best Regards,

Jonathan P. Chance
President of the United States

--- "Ahorrist@ Argentin@" wrote:
> The public opinion in the US is alarmed by the
> consequences of bad business and accounting
> practices that came to light after the Enron
> collapse.
> But little consideration is given to something of
> larger magnitude happening thousands of miles away
> like the Government and banking fraud, taking place
> in Argentina. There, US banks are likely to be
> involved, in what seems to be a plot between a
> corrupt government, banks and large corporations
> that resulted in a major racketing of bank
> depositors, with losses than run from 70% to 100% of
> their savings.
> In addition, the resulting Government decisions
> produced that most people have lost most of their
> retirement savings, which supposedly were protected
> since the contributions were made to private
> companies, not to the government as in past times.
> And many of those retirement companies were also
> formed with the participation of banks.
> For years banks financed the Argentinean Government.
> They gave risky loans to the Government, to
> companies and to individuals at high interests,
> which produced them record income for long periods
> of time. They also purchased high yield Government
> bonds at bargain prices, although they valued them
> at nominal value in their balance sheets. When worst
> came to worst (devaluation) with the likelihood of
> irrecoverable credits (just the risky situation they
> had been protecting themselves through high interest
> rates), they refused to take the losses, and lobbied
> with the government to find a solution that
> benefited both…. but somebody else would pay.
> In the resulting plan, large corporations and the
> Government obtained relief for their debts through
> the liquification of them obtained by means of their
> conversion to pesos at an arbitrary rate. What did
> banks asked in exchange?. A major confiscation of
> bank deposits, which where converted from dollars to
> the local currency, the peso, also at an arbitrary
> rate and resulted in a virtual confiscation of
> savings. Deposits can not be recovered yet, even
> after their conversion to pesos, while they loose
> value due to the resulting high inflation and it is
> uncertain if they will ever be recovered since rules
> are changed every day… for the worst. This
> confiscation has been done through decrees that have
> already been declared unconstitutional by judges and
> the Supreme Court, but that the banks continue to
> obey and they use to justify their actions even
> though they violate existing laws and the
> Constitution.
> Why, can banks and particularly US banks get away
> with such behavior without being investigated in
> their country of origin? Some people in the US would
> answer that this is strictly a foreign affair issue.
> But not completely so, when many of these banks are
> actually branches of US banks.
> Banks could have stopped the pesofication of
> deposits that has halted the economy in Argentina.
> Simply by refusing to violate existing laws like the
> "intangibility law" and the Constitution. No bank
> has gone to Court to protect their client rights nor
> their business. Instead they are protecting their
> shareholders short term profits, regardless of the
> means they use, very close to illegality. With the
> excuse of "protecting the financial system", it was
> actually destroyed since they violated the basic
> premise: TRUST. And then, instead of protecting the
> financial system, the confiscatory measures turned
> out to be an assistance to "bank shareholder" to
> assure profits or minimize losses.
> Banks are announcing losses due to their exposure in
> Argentina. But they do not balance the losses this
> year with the benefits made during years through
> high interest credits nor profits they will make in
> future years as a result, since the pesofication of
> credits and deposits have many characteristics that
> will improve their benefits in future years. And
> THAT is the reason why banks have not gone to Court.
> How can that be explained otherwise?
> Did the US Government do anything to protect the
> interests of their citizens, affected by this
> situation in Argentina? No, even though one of the
> basic elements of democracy and capitalism has been
> violated: PRIVATE PROPERTY. The US government and
> the IMF (entity controlled in great part by the US)
> have been very careful to force the Argentinean
> Government to cancel and to modify existing laws,
> which were inconvenient to bankers as a previous
> condition for a loan. But it has exerted absolutely
> no pressure to protect US citizens and residents
> from these abuses. Why are bankers, which are in a
> very "gray line" of legality, protected by US and
> the IMF officials and not the US citizens personally
> affected?
> Why, if bankers inflicted existing laws in
> Argentina, now they are protected through pressure
> exerted to the Argentinean Government to make them
> change EXISTING laws that were violated, while US
> citizens and residents (not to mention Argentinean
> citizens), having all the legal rights in Argentina
> and in the US are not?
> In fact, the US Code, Title 22 specifically forbids
> the US Government to provide loans to countries that
> confiscate property of US citizens. And although
> what is happening is clearly a violation of their
> property (as well as the one of millions of people
> from Argentina), the US and the IMF seem to be in
> the verge of giving Argentina a new loan. And to
> support indirectly a Government that is violating
> one of the fundamental stones of capitalism and free
> world: private property. Of course, lawyers will
> find a legal escape for not to comply with the
> intent of the US Code. But that is not the point.
> The point is that the U.S. Government seems more
> interested in protecting power groups rather than
> simple citizens. And that should be a matter of
> concern.
> Why isn't there an investigation to verify
> questionable accounting practices, and nonethical
> business from US banks in Argentina, that seem to
> attain whatever their need from corrupt politicians
> in Argentina when they need it?
> Is it legal, or ethical for a bank to advertise that
> they are branches of US banks, and after they
> collect deposits based of that supposed solvency
> they do not return savings even when they can?
> Is it legal or ethical to report government bonds at
> their nominal value when the market value is
> significantly lower?
> Is it ethical to lobby for unconstitutional decrees
> AGAINST their clients?
> All these actions that banks took, were clearly
> steps contrary to the interests of their clients.
> Why things that are not allowed in the US are
> allowed to US banks when the act outside the US? Is
> this a dual standard?
> The Enron collapse happened in the US and affected
> mostly Americans, potential voters, and then, it was
> investigated. But some US banks seem to have a
> license to steal when doing business in third world
> countries. What is an incorrect or illegal business
> practice in the US, should also be so when abroad.
> And the US Government and Federal institutions
> should control and investigate that US banks are not
> part of questionable practices abroad, as well as it
> should defend the interests of US citizens, not only
> when they are bankers.
> Yours sincerely
> ---------------------------------
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