Wednesday, February 1, 2012

Gangsters and Banksters: A Serial Tale, Part VI

Today, the United States Securities and Exchange Commission (SEC) charged four former bankers and traders of the Credit Suisse Group with engaging in a fraudulent scheme to overstate the prices of $3 billion in subprime bonds.

Robert Khuzami, in the following quoted statement, captures the essence of this case and the egregious behavior of the banksters.

“The stunning scale of the illegal mismarking in this case was surpassed only by the greed of the senior bankers behind the scheme. At precisely the moment investors and market participants were urgently seeking accurate information about financial institutions’ exposure to the subprime market, the senior bankers falsely and selfishly inflated the value of more than $3 billion in asset-backed securities in order to protect their bonuses and, in one case, protect a highly coveted promotion.”
Mr. Khuzami is the director of the SEC's Division of Enforcement.

You can read the complete press release here.

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