[Why Bitcoin?] Report: 6 Megabanks Subject to 351 Major Legal Actions, $200 Billion in Fines Since 2008 Crisis
Even after receiving $8.2 trillion in bailouts – people’s money paid in taxes, six megabanks committed hundreds of illegal acts and have been subject to over 350 major legal actions that resulted in almost $200 billion in fines and settlements, over the last two decades.
A special report titled “Wall Street’s Six Biggest Bailed-Out Banks: Their RAP Sheets & Their Ongoing Crime Spree” from Better Markets covers six banks viz. Bank of America, Citi, Goldman Sachs, JPMorgan Chase and Co., Morgan Stanley, and Wells Fargo.
The report points out the $29 trillion that was lent, pledged, spent and otherwise used to bail out the financial system during the 2008 financial crash.
“One might think that receiving trillions of dollars of undeserved and lifesaving taxpayer bailouts would cause those financial institutions to reform their high-risk, destabilizing activities or, at a minimum, to rein in their predatory conduct and illegal practices. Think again.”
Forget remorse or reforming their abilities, they continue to engage in a “crime spree that spans the violation of almost every law and rule imaginable.” As a matter of fact, the number of cases against the banks has increased relative to the pre-crash era.
These illegal activities involve market manipulation, anti-money laundering violations, unlawful debt collection practices, failure to disclose adviser conflicts of interest, claims relating to the London Whale derivatives trades, failure to disclose adviser conflicts of interest and many others.
The financial crash of 2008 was that led to the biggest economic downturn in US history since the Great Depression. Reportedly, 8.8 million people lost their jobs during this crash. It was not just the financial hardship, this crash also brought about the distrust of banks, financial institutions, and governments.
After this crisis, people were demanding for a currency that is not controlled by a central authority. This was when an unknown person named Satoshi Nakamoto created a peer-to-peer electronic cash system called Bitcoin.
The predominant form of currency today in the world is fiat currencies that are controlled by the national government which has been proved a mistake time and again as evident from the hyperinflation in Venezuela and Zimbabwe.
Unlike fiat, Bitcoin that was designed essentially to be a better gold has a fixed supply. Though initially every 10 minutes 50 Bitcoins were created, it is constantly decreasing with an event called Bitcoin block reward halving that occurs every four years and cuts the supply.
The flagship cryptocurrency is still in its early stages as it’s just a decade old that is gradually achieving recognition and adoption. Currently, one BTC’s value is around $5,000 that in 2017 surged to $20,000 and is now approaching its third-halving.
Digital gold that in some aspects is better than the gold itself is providing an alternative currency in regions where the fiat system is failing while going across the borders eliminating middlemen and censorship.