September 30, 2013
Cathy Scharf, former compliance officer, spoke at the Certified Anti-Money Laundering Specialists (CAMS) conference in Nevada; explaining how SunFirst Bank (SFB), a Utah bank, she worked for was “illegally processed at least $200 million for the offshore gambling sites PokerStars and Full Tilt Poker.”
Scharf said that executives at the bank supported the activity because it kept their bank from going under.
The bank then hired “criminal lawyers to threaten” her to arrest if she revealed the scheme.
SFB was also entangled in offshore money laundering connected with gambling operations that explained why the bank was focused on acquiring more customer deposits.
Scharf explained: “Whenever a gambler transferred funds to one of the offshore card sites, the money went through the small Utah bank. The bank was making $400,000 a month in transaction fees, violating a 2006 law that makes it a federal crime to knowingly accept payment for illegal internet gambling. They wanted to keep making money so they could bring the bank back. My frame of mind was just shoot me and put me out of my misery.”
In April, former House Representative Ron Paul stated that the depositor theft in Cyprus exposed how “these banks then took their bad investments to the government, demanding a bailout from an already beleaguered Cypriot treasury. The government of Cyprus then turned to the European Union (EU) for a bailout.”
Paul went on to state: “The elites in the EU and IMF failed to learn their lesson from the popular backlash to these tax proposals, and have openly talked about using Cyprus as a template for future bank bailouts. This raises the prospect of raids on bank accounts, pension funds, and any investments the government can get its hands on. In other words, no one’s money is safe in any financial institution in Europe. Bank runs are now a certainty in future crises, as the people realize that they do not really own the money in their accounts. How long before bureaucrat and banker try that here?”
David Stockman, former director of the Office of Management and Budget (OMB) under the Reagan administration, said: “As a result of being rescued and having the cleansing liquidation of rotten balance sheets stopped, within a few weeks and certainly months they were back to the same old games . . .”
Earlier this year, it was revealed that Wells Fargo was involved in loan manipulation to the tune of $176 billion in cooked books. Deposit monies climbed for Bank of America (BoA) to $221 billion, while JP Morgan & Chase Co (JPM) reported $460 billion in excess of depositor funds.
In 2012, the biggest banks in the US were given advisement by US regulators that they must make plans to stave off a complete financial collapse without relying on the US government.
BoA, Goldman Sachs and other technocrats have secretly crafted worst-case scenarios in which they can continue to thrive during a full-blown domestic monetary crisis.
The Federal Reserve Bank (FRB) and the US Office of the Comptroller of the Currency (OCC) named Citigroup Inc., Morgan Stanley and JPM, as well as others, to devise “recovery plans” in 2010. Banks were directed to have schemes to remain afloat by selling off assets, finding alternative sources of funding, reducing risky measures that make a quick buck. These strategies were to be perfected with “no assumption of extraordinary support from the public sector.”
Resolution plans , required under the 2010 Dodd-Frank financial reform law describe how to liquidate banking assets without causing further damage to a failing financial system. By selling “non-core assets” without upsetting shareholders while protecting the monetary system, taxpayers and creditors is the work of the mega-banks who have contributed solely to the destruction of the global financial markets.
The OCC constantly monitors the largest banks and evaluates their resolution plans to provide assurance to the US government that financial instability will not destroy the banking industry in America.
The details of the resolution plans are considered confidential. While the mega-banks wait to see if another round of banker bail-outs will alleviate the pressure of the international interests as BoA and Citigroup begin to act as if they are implementing their resolution plans covertly.
BoA has sold off portions of their domestic assets to secure capitol while Citigroup has followed suit.
Citigroup, in their resolution plan decided by management meetings by regulators, will “make appropriate assumptions as to the valuations of assets and off-balance sheet positions.”
By adhering to initiatives provided by the Financial Stability Board (FSB), these mega-banks will, when they enact their resolution plans, coordinate with international banking institutions and regulators rather than simply implode.