Obama claims that banks are too big to fail– but also apparently too big to jail. However, Americans can learn a lesson from Iceland, whose government jailed 26 corrupt bankers giving them 74 years in prison for their role in contributing to Iceland’s 2008 economic collapse.
Imagine that: twenty-six bankers were sentenced to 74 years behind bars.
Nation of Change presents the background:
When the banking induced “Great Recession of ’08” struck, Iceland’s economic hit was among the hardest. However, instead of rewarding fraudulent banking procedures with tons of bailout money, they took a different path.
Prior to the recession, Iceland had one of the more thriving economies in the world, in spite of the fact that their total population (327,000) wouldn’t even fill a mid-sized American city. When the recession struck, they were among the earliest and hardest hit. However, instead of running to the vaults to shower the banks with money, they let the banks fail. They also resisted traveling down the European/Republican austerity road. Instead, they kept their social programs intact at a time when they were most needed.
And, they sent fraudulent bankers to jail.
When Iceland’s three major banks collapsed, it resulted in defaults totaling $114 billion in a country with a gross domestic product (GDP) of only $19 billion. In October, 2008 the parliament passed emergency legislation to take over the domestic operations of the major banks and established new banks to handle them. They did not, however, take over any of the foreign assets or obligations. Those stayed with the original banks, right into bankruptcy.
By contrast, in America, when the five major banks in America pled guilty to manipulating global currencies and interest rates, they were fined $5.7 Billion— and no one got justice. Banks are “insured” at tax payer expense from robbery– from which the Federal Reserve profits.
Let’s not forget, the bail-out of the ‘too big to fail banks” was accomplished by Congress, whose representatives told the American people it had to be done to avoid a financial Armageddon. Both parties– both the Democrats and Republicans kept to the same story.
Instead of justice, the American people have been shackled with an enormous financial burden of $19 trillion because of the corruption in the U.S. banking system and Congress. And this debt excludes the funds Congress has unconstitutionally given to the auto industry, insurance companies, failed green energy companies and more.
These predators in the banking system are feeding off of the last remains before they are completely devoured– and many of them are being forced to buy securities to avoid, or prolong another financial crash.
Do the bankers ever take responsibility for their unethical actions?
Consider that the former head of the Federal Reserve, who called on Wall Street Executives to be held accountable— but– he doesn’t want the Federal Reserve to be held accountable.
Apparently, neither does Senator Ted Cruz (R-TX), who failed to show up to even vote to audit the Fed in January. Senators Marco Rubio’s (R-FL) and Rand Paul (R-TX) both voted in favor of auditing the Fed.
However, consider that behind the corruption of both Wall Street and the banksters are politicians who refuse to expose the corruption– and are complicit in it.
The question for the American taxpayer is: when will real justice occur?
Paying a fine to government is not justice for cheating people out of money or indebting others because of bad business practices. That’s simply extortion.
Tim Brown is an author and editor for FreedomOutpost.com, SonsOfLibertyMedia.com, GunsInTheNews.com and TheWashingtonStandard