Virginia Files Billion-Dollar Suit Against Banksters

• Virginia files lawsuit against plutocrats who conned state with toxic mortgages.

By Ronald L. Ray —

True to its state motto — “Sic semper tyrannis,” or “Thus always to tyrants” — the Commonwealth of Virginia has brought a$1.15 billion civil fraud lawsuit against a “banker’s dozen” of the largest international investment houses. Attorney General Mark R. Herring announced the case in mid-September, which was filed in Richmond Circuit Court. In a prepared statement, the Office of the Attorney General (OAG) alleged that the big banks deliberately misrepresented the quality of residential mortgage-backed securities (RMBS), a form of financial derivative, sold to the Virginia Retirement System (VRS), beginning in 2004.

Prior to 2010, “Virginia was forced to sell the vast majority of these toxic securities built on junk mortgages and lost $383 million.” The attorney general now seeks to obtain the maximum penalty allowed by law, in order to redress the harm done to Virginia taxpayers. The OAG expects that the money recovered will go to repay the taxpayers and VRS for their losses.

In a virtual “who’s who” of plutocratic pirates, 13 mega-banks have been accused of violating the commonwealth’s 2002 Fraud Against Taxpayers Act, which permits treble damages for losses, plus additional penalties.

According to the Richmond Times-Dispatch, however, two JPMorgan Chase subsidiaries, JPMorgan Securities LLC and WAMU Capital Corporation (formerly Washington Mutual), were dropped subsequently, when the OAG learned that Herring’s predecessor, Kenneth T. Cuccinelli II, had previously reached a secret settlement with the two firms for $3 million. Depending on circumstances, however, they could be sued in the future.

The remaining “banker’s dozen” are subsidiaries of the world’s biggest institutional usurers: Barclays, Citigroup, Countrywide, Credit Suisse, Deutsche Bank, Goldman Sachs, RBS, HSBC, Morgan Stanley, UBS and Merrill Lynch.

In brief, Virginia alleges that 220 securities it purchased were offered as being rated AAA or similarly, with 0% delinquency. This factor is important to institutional investors like Virginia because ofthe need for a stable and secure return. However, 75% of the mortgages eventually defaulted. The RMBSs were backed by 785,000 mortgages, of which 40% were “fraudulently misrepresented.” The OAG stated that the banks “knew, or shouldhave known,” that claims in their prospectuses and sales presentations were false.

The fraudulent practices were discovered by Integra REC, LLC, “using extremely sophisticated proprietary methods” to match RMBSs with the respective individual mortgages, said the OAG.

The first of three main accusations is that the banks misrepresented the loan-to-value ratio (an indication of likely default). On average, only 23.4% of loans were represented as being for more than 80% of property value, when it was really 54%. Fifteen percent were “underwater.” Further, rates of owner occupancy were overstated significantly, and second mortgage numbers were severely understated. Both of these latter factors also contribute to delinquency rates.

Herring stated: “Every Virginian was harmed by the financial crisis. Homes were lost, retirement accounts were devastated, small businesses saw their credit dry up almost overnight. . . . I will notallow Virginians to be left holding the bag for the reckless, fraudulent business practices of a few big banks who thought they were above the law. These banks lied to Virginia, and taxpayers and [nearly 600,000] state employees lost hundreds of millions dollars as a result.”

As a measure of Herring’s confidence and resolve, the Commonwealth of Virginia has demanded a jury trial. It is to be hoped that true justice will be served, and that there will be no further secret settlements that allow the plunderous plutocrats to return to usury as usual.

Despite a nearly endless stream of revelations of the moneylenders’ wrongdoing—now including collusion by the Federal Reserve—at least one apologist for the weasels of Wall Street, Matthew E. Fishbein, suggests in the New York Law Journal that the banksters and other corporate criminals are the victims, forced by evil government lawyers to admit to things they believe they did not do. He goes so far as to call cases similar to the Virginia lawsuit “marginal,” because they involve only a few hundred million dollars.

But the truth is that the international bankers are usurious pirates, bent on sucking every cent out of the nearly empty pockets of widows and orphans. They have created a corporate culture ofcorruption, which is destroying nearly every economy on the face of the planet. It is time to end the financial pharaohs’ stranglehold on the common man by ending usury and putting every single one of these predatory banks out of business.


Ronald L. Ray is a freelance author and an assistant editor ofTHE BARNES REVIEW. He is a descendant of several patriots of the American War for Independence.

Source.

SHELL GAME: This Is Why Michael Hastings Was Murdered And Eric Holder Stepped Down [Video]

“19,000 Swiss Bank Accounts fund Terrorism.

Part of the reason behind Eric Holder’s immediate retirement.”

Discussion of the book SHELL GAME: A Military Whistleblowing Report to the U.S. Congress Exposing the Betrayal and Cover-Up by the U.S. Government of the Union Bank of Switzerland-Terrorist Threat Finance Connection to Booz Allen Hamilton and U.S. Central Command ~ 2LT Scott Bennett 11th Psychological Operations Battalion (retired)

Background: Scott Bennett is a U.S. Army Special Operations Officer (11th Psychological Operations Battalion, Civil Affairs-Psychological Operations Command), and a global psychological warfare-counterterrorism analyst, formerly with defense contractor Booz Allen Hamilton.

He received a Direct Commission as an Officer, held a Top Secret/Sensitive Compartmentalized Information (TS/SCI) security clearance, and worked in the highest levels of international counterterrorism in Washington DC and MacDill Air Force Base in Tampa, Florida. He has worked at U.S. Special Operations Command, U.S. Central Command, the State Department Coordinator for Counterterrorism, and other government agencies. He served in the G.W. Bush Administration from 2003 to 2008, and was a Social Science Research Fellow at the Heritage Foundation. His writings and lectures seek to enhance global awareness and understanding of modern psychological warfare, the international intelligence.

Source.

Following a Wave of Banker Suicides, 3 Former Barclays Bankers Now Charged in LIBOR Scandal [video]

Finally!!! Bankster arrests and prosecutions as Barclays steps into the ring.

And it appears that the last JP Morgan exec to die in Hong Kong may have been an actual suicide. See the video below. I guess we could say he lived the way he chose, and died the way he chose. ~ BP

Melissa Melton | Activistpost | Feb 19th 2014

jpmorgan_man on ledge

Three former Barclays bank employees have now been charged with “conspiracy to defraud” in the continuing LIBOR scandal, bringing the total to 13 people charged in America and the U.K. It has been reported that three ex-ICAP brokers are next on the list for helping traders manipulate interest rates.

Three former Barclays bankers have been charged “in connection with the manipulation of Libor” interest rates, the Serious Fraud Office said.

The SFO alleges the three – Peter Charles Johnson, Jonathan James Mathew and Stylianos Contogoulas – “conspired to defraud between 1 June 2005 and 31 August 2007″.

They will appear at Westminster Magistrates court at a date to be confirmed. (source)

LIBOR is an interbank benchmark used to set the interest rates on trillions in loans all over the world.

The investigation into LIBOR’s deliberate manipulation began in 2008, and it has come to light that traders at various banks all over the world have benefited financially from turning in false interest rate reports since.

Thus far, Barclays and other mega banks including JP Morgan Chase, Citigroup, UBS, Deutsche Bank and the Royal Bank of Scotland have been forced to pay billions in regard to rigging interest rates.

The Wall Street Journal is also reporting that authorities in the United States, United Kingdom and EU are currently investigating a group of traders from various banks for manipulating Euribor, the euro interbank interest rate, as well.

The news comes on the heels of a rash of banker suicides.

Jan. 26, 2014
William Broeksmit, 58-year-old retired Deutsche Bank senior manager with close ties to co-chief exec. Anshu Jain, was found hanging dead at his home in London. It was reported as an apparent suicide. Police quickly declared that Broeksmit’s death was not suspicious.

Jan. 28, 2014
Two days later Gabriel Magee, 39, reportedly leapt to his death from the 33rd story of JP Morgan’s European headquarters in London sometime around 8 a.m. Magee was the bank’s VP in CIB Technology. His death was also quickly ruled “non-suspicious”. There was no indication Magee was going to kill himself at all. In fact, Magee’s girlfriend had received an email from him the night before saying he was finishing up work and would be home soon.

The London Coroner’s Office is set to hold a formal inquest into Magee’s death, but not until May 15th.

Jan. 29, 2014
Chief Economist at Russell Investments, 50-year-old Mike Dueker, was reported missing on Jan. 29. He was found dead off the side of a highway leading to Tacoma Narrows Bridge in Washington. A Pierce County detective said he may have jumped over a four-foot fence and fallen some 40-to-50 feet down an embankment in another apparent suicide. Although the detective maintained Dueker was having trouble at work, a Russell spokeswoman said Dueker was in good standing.

Dueker, a prior assistant VP and research economist for the St. Louis branch of the Federal Reserve Bank, had worked at Russell for five years, during which time he developed a business-cycle index that forecast economic performance.

Feb. 3, 2014
Ryan Crane, a 37-year-old JP Morgan trading exec., was found dead in his Stamford, Connecticut home. He was an executive director, a rank above vice president, in the bank’s Americas Program Trading group. Cause of death is awaiting determination via toxicology report.

Feb. 4, 2014
57-year-old Richard Talley, former investment banker at Drexel Burnham Lambert and founder of Centennial, Colorado-based American Title Services, was found dead in his garage with eight nail gun wounds to his torso and head. They were reportedly “self-inflicted”. His company was under investigation at the time of his death.

Just last month, JP Morgan Chase, America’s biggest bank, admitted wrongdoing and was fined $461 million for willfully violating the Bank Secrecy Act in relation to Bernie Madoff’s multi-billion dollar Ponzi scheme. “When JPMorgan suspected Mr. Madoff’s fraud, it focused on its own investment exposure and saved itself approximately $250 million. If it had given the same attention to its anti-money laundering responsibilities, it could have saved itself $2 billion, and potentially saved thousands of other fraud victims untold misery and loss,” stated Financial Crimes Enforcement Network Director Jennifer Shasky Calvery.

JP Morgan also owns over 60% of the total notional of all US gold derivatives ($108.2 billion).

While all these instances could be entirely unrelated in any way, others are wondering if the heat intensifying in the LIBOR scandal, the hint at other major interest rate scandals, and the rash of recent banker suicides is suggesting a bigger global financial implosion to come.

Melissa Melton is a writer, researcher, and analyst for The Daily Sheeple, where this first appeared, and a co-creator of Truthstream Media. Wake the flock up!

More from Activistpost

Another JP Morgan Banker committed suicide over the weekend.  Watch this video for the latest update:

Crocodile Dundee Actor Paul Hogan Chases His Missing Offshore Millions

Gee, after the ICIJ (International Consortium of Investigative Journalists) recently exposed the tax havens the rich and famous and reptilian use to hide their money—you didn’t really think you’d get to keep it, did you, Paul? Tsk-tsk. Save your energy for croc hunting.

Here’s what the journalists learned after many years of first class sleuthing:

  • Government officials and their families and associates in Azerbaijan, Russia, Canada, Pakistan, the Philippines, Thailand, Mongolia and other countries have embraced the use of covert companies and bank accounts.
  • The mega-rich use complex offshore structures to own mansions, yachts, art masterpieces and other assets, gaining tax advantages and anonymity not available to average people.
  • Many of the world’s top’s banks – including UBS, Clariden and Deutsche Bank – have aggressively worked to provide their customers with secrecy-cloaked companies in the British Virgin Islands and other offshore hideaways.
  • A well-paid industry of accountants, middlemen and other operatives has helped offshore patrons shroud their identities and business interests, providing shelter in many cases to money laundering or other misconduct.
  • Ponzi schemers and other large-scale fraudsters routinely use offshore havens to pull off their shell games and move their ill-gotten gains.

April 14, 2013

Secrecy for Sale: Inside the Global Offshore Money Maze

Paul Hogan wants his millions back from Switzerland, but his Geneva intermediaries refuse to give him the loot.

Crocodile Dundee star Paul Hogan may have settled his tax case with Australian authorities but he is accusing his once-trusted tax adviser of absconding with $34 million he helped Hogan hide in offshore tax havens.

There is already an international warrant out for Philip Egglishaw, the man known as the ”bowler hat Englishman”, who is the alleged mastermind behind Australia’s biggest tax evasion scheme.

But now the international fugitive has the Australian actor on his tail, with Hogan’s advisers taking legal action in the US alleging Egglishaw, who set up elaborate corporate structures in tax havens to help his clients evade tax, has stolen the entertainer’s money.

Court documents obtained by Le Matin Dimanche as part of their joint investigation with the International Consortium of Investigative Journalists state that Hogan’s $34 million ”has been lying for almost 20 years in account number 379865 at the Corner Bank in Lausanne” run by the Geneva firm Strachans. But Hogan cannot get his hands on it.

Egglishaw is alleged to have ”absconded with or spent all” of Hogan’s millions, according to documents filed in the Californian District court by Hogan’s representative, Schuyler ”Sky” Moore, one of Los Angeles’ top entertainment lawyers.

In October last year, Moore emailed Egglishaw’s lawyer in Geneva, Paul Gully-Hart. ”The actions of Egglishaw have now crossed the boundary of legality, and he is now engaging in criminal fraud, theft, and breach of fiduciary duty, and you are now directly aiding and abetting his criminal actions,” Moore said in his email. ”The Carthage Trust’s beneficiary [Hogan] is not going to stand idly by in the face of this theft, and he is going to take every step possible in every country possible to hold Egglishaw, Strachans, you, and your firm liable and brought to account.”

Throughout last year, Hogan and his US advisers became increasingly anxious after Egglishaw refused to provide any bank statements or accounts relating to the millions in the Carthage Trust.

An added problem for Hogan is the other signatory to the Carthage account is in jail in Australia.

Philip de Figueiredo, Egglishaw’s partner at Strachans, is serving 2½ years in prison. Last month in the Queensland Supreme Court, de Figueiredo pleaded guilty to three counts of conspiring to defraud the Australian government of more than $4 million in tax. His guilty plea related to helping clients avoid paying tax. A string of Strachans’ clients such as prominent entrepreneur Glenn Wheatley, Brisbane entrepreneurs Adam Hargraves and Daniel Stoten, have already served time for tax evasion.

De Figueiredo had money laundering charges against him dropped and he has agreed to assist authorities with ongoing investigations. An arrest warrant has been issued for Egglishaw over the same matters. It is believed he is in Switzerland.

Operation Wickenby, a joint investigation by the Australian Crime Commission and the Australian Tax Office, has taken years and cost millions of dollars investigating Egglishaw’s and de Figueiredo’s Australian clients, including Hogan and his comedy sidekick John ”Strop” Cornell.

After years of legal battles, Hogan and Cornell settled with the Tax Office on confidential terms. Its fight with their financial adviser Anthony Stewart continues.

After the Crime Commission and Tax Office began stepping up their inquiries into Hogan in 2005, Egglishaw set up a new trust for Hogan called the Carthage Trust.

This trust replaced the Quatre Saison Trust which was alleged to have been a vehicle set up by Strachans to enable Hogan to stream revenue from his Crocodile Dundee franchise into offshore accounts and thereby avoid paying tax. Hogan disputes this.

The initial beneficiary of the Carthage Trust was listed as the ”British Red Cross” but later documents stated ”the sole intended beneficiary of the Carthage Trust is Hogan, and this structure was adopted to maintain his privacy”.

Egglishaw used another entity, Grasselle, a British Virgin Islands company, to run the Carthage Trust. Up to $US37 million was held by Carthage Trust in the Corner Bank in Lausanne.

Late last year, Moore, who is listed as the trustee of Hogan’s Carthage Trust, launched action against Egglishaw and Strachans in the US.

In the Californian court filings, Moore stated he believed Egglishaw had absconded with Hogan’s millions, or if he had not, he intended to. California District judge Otis D. Wright summed up Moore’s case when he said it was ”a sordid tale of wayward fiduciaries and international fraudsters supposedly absconding with millions of dollars in funds from a Swiss bank account”.

But there were two major problems with Moore’s case, Judge Wright said. California was not the correct jurisdiction to bring the action since one defendant, Grasselle, was a company in the British Virgin Islands and the other was a British-born Swiss resident.

”Given the dearth of connections … to California, the ‘long arm of the law’ is simply too short to reach them,” the judge said, dismissing the case in February.

According to Le Matin Dimanche, Brian Merryman, Egglishaw and Strachans’ US lawyer, has said Judge Wright’s decision had not been appealed and Moore had not lodged any further complaints.

Hogan’s Australian lawyer Andrew Robinson tried to distance Hogan from the US court proceedings, saying he was ”not a party and gave no evidence by way of affidavit or otherwise” in the recent case. ”Paul has never denied the existence and operation of overseas structures set up in accordance with competent advice received,” Robinson said.

Hogan’s US lawyer Craig Emanuel told Fairfax Media: ”For a variety of ethical reasons, I am not available to comment on your inquiries.”

The Wickenby tax inquiry was kicked off by the 2004 seizure of a computer belonging to Egglishaw, who was in Australia to see some of his clients.

Le Matin Dimanche came across the Hogan court case as part of an inquiry by the International Consortium of Investigative Journalists into the use of tax havens.

I love the last sentence of this great video: “…and it’s all perfectly legal… if you declare it.”

Source

COBRA Update for April 29th

https://2012thebigpicture.files.wordpress.com/2013/04/e7dbc-ubs.jpg 

Where’s my saucer when I need one?!

Short Update about the Zurich Conference

Despite a strong opposition from the non-physical negative forces this conference was a great success and a major energy breakthrough was made.

St. Germain has led us to purify the etheric matrix structure of the major banks, such as UBS and Credit Suisse and all this has already contributed to some cascading events that assist in exposing the real structure of the financial system to the masses.

The Zurich vortex is now activated for the Light and the Goddess is definitely present!

Probably you are already feeling the acceleration that is preparing us for the activation of the portal on May 25th. A special article with more intel about that portal will be posted on my blog soon. We will be anchoring energies for that portal in Laguna Beach and you are all welcome to join us:

http://portal2012.org/Laguna.html

After the activation of the portal, a lot of Goddess presence will be needed on the planet to stabilize the situation amidst all the changes and you are all welcome to join us in Hawaii, a major Goddess vortex point for this planet:

http://portal2012.org/Hawaii.html

Everything is Rigged: The Biggest Price-Fixing Scandal Ever—The Illuminati were Amateurs

Can you believe it? Finally—the tin-foil hats vindicated? Thanks, Uwe! You rock!
For years no one wanted to talk about the truth, and now, EVERYONE wants a piece of the action. I was thinking earlier today that now that Glenn Beck has outted the feds, and Alex Jones has shed light on the Boston Bombing, and David Lory VanDerBeek made his opinion known, everyone is going to want to climb on the band wagon. Oh well. At least the truth is finally coming out in some new venues.
Everything Is Rigged: The Biggest Price-Fixing Scandal Ever

The Illuminati were amateurs. The second huge financial scandal of the year reveals the real international conspiracy: There’s no price the big banks can’t fix

April 25, 2013 1:00 PM ET

Conspiracy theorists of the world, believers in the hidden hands of the Rothschilds and the Masons and the Illuminati, we skeptics owe you an apology. You were right. The players may be a little different, but your basic premise is correct: The world is a rigged game. We found this out in recent months, when a series of related corruption stories spilled out of the financial sector, suggesting the world’s largest banks may be fixing the prices of, well, just about everything.

You may have heard of the Libor scandal, in which at least three – and perhaps as many as 16 – of the name-brand too-big-to-fail banks have been manipulating global interest rates, in the process messing around with the prices of upward of $500 trillion (that’s trillion, with a “t”) worth of financial instruments. When that sprawling con burst into public view last year, it was easily the biggest financial scandal in history – MIT professor Andrew Lo even said it “dwarfs by orders of magnitude any financial scam in the history of markets.”

That was bad enough, but now Libor may have a twin brother. Word has leaked out that the London-based firm ICAP, the world’s largest broker of interest-rate swaps, is being investigated by American authorities for behavior that sounds eerily reminiscent of the Libor mess. Regulators are looking into whether or not a small group of brokers at ICAP may have worked with up to 15 of the world’s largest banks to manipulate ISDAfix, a benchmark number used around the world to calculate the prices of interest-rate swaps.

Interest-rate swaps are a tool used by big cities, major corporations and sovereign governments to manage their debt, and the scale of their use is almost unimaginably massive. It’s about a $379 trillion market, meaning that any manipulation would affect a pile of assets about 100 times the size of the United States federal budget.

It should surprise no one that among the players implicated in this scheme to fix the prices of interest-rate swaps are the same megabanks – including Barclays, UBS, Bank of America, JPMorgan Chase and the Royal Bank of Scotland – that serve on the Libor panel that sets global interest rates. In fact, in recent years many of these banks have already paid multimillion-dollar settlements for anti-competitive manipulation of one form or another (in addition to Libor, some were caught up in an anti-competitive scheme, detailed in Rolling Stone last year, to rig municipal-debt service auctions). Though the jumble of financial acronyms sounds like gibberish to the layperson, the fact that there may now be price-fixing scandals involving both Libor and ISDAfix suggests a single, giant mushrooming conspiracy of collusion and price-fixing hovering under the ostensibly competitive veneer of Wall Street culture.

The Scam Wall Street Learned From the Mafia

Why? Because Libor already affects the prices of interest-rate swaps, making this a manipulation-on-manipulation situation. If the allegations prove to be right, that will mean that swap customers have been paying for two different layers of price-fixing corruption. If you can imagine paying 20 bucks for a crappy PB&J because some evil cabal of agribusiness companies colluded to fix the prices of both peanuts and peanut butter, you come close to grasping the lunacy of financial markets where both interest rates and interest-rate swaps are being manipulated at the same time, often by the same banks.

“It’s a double conspiracy,” says an amazed Michael Greenberger, a former director of the trading and markets division at the Commodity Futures Trading Commission and now a professor at the University of Maryland. “It’s the height of criminality.”

The bad news didn’t stop with swaps and interest rates. In March, it also came out that two regulators – the CFTC here in the U.S. and the Madrid-based International Organization of Securities Commissions – were spurred by the Libor revelations to investigate the possibility of collusive manipulation of gold and silver prices. “Given the clubby manipulation efforts we saw in Libor benchmarks, I assume other benchmarks – many other benchmarks – are legit areas of inquiry,” CFTC Commissioner Bart Chilton said.

But the biggest shock came out of a federal courtroom at the end of March – though if you follow these matters closely, it may not have been so shocking at all – when a landmark class-action civil lawsuit against the banks for Libor-related offenses was dismissed. In that case, a federal judge accepted the banker-defendants’ incredible argument: If cities and towns and other investors lost money because of Libor manipulation, that was their own fault for ever thinking the banks were competing in the first place.

“A farce,” was one antitrust lawyer’s response to the eyebrow-raising dismissal.

“Incredible,” says Sylvia Sokol, an attorney for Constantine Cannon, a firm that specializes in antitrust cases.

All of these stories collectively pointed to the same thing: These banks, which already possess enormous power just by virtue of their financial holdings – in the United States, the top six banks, many of them the same names you see on the Libor and ISDAfix panels, own assets equivalent to 60 percent of the nation’s GDP – are beginning to realize the awesome possibilities for increased profit and political might that would come with colluding instead of competing. Moreover, it’s increasingly clear that both the criminal justice system and the civil courts may be impotent to stop them, even when they do get caught working together to game the system.

If true, that would leave us living in an era of undisguised, real-world conspiracy, in which the prices of currencies, commodities like gold and silver, even interest rates and the value of money itself, can be and may already have been dictated from above. And those who are doing it can get away with it. Forget the Illuminati – this is the real thing, and it’s no secret. You can stare right at it, anytime you want.

Former GE Execs Get Prison Terms in Bid-Rigging Case

NEW YORK (CNNMoney) — A trio of former financial executives from General Electric are headed to prison after being found guilty of defrauding taxpayers in the municipal bond market.

The men are the first to be sentenced as part of the government’s ongoing investigation of bid-rigging in auctions for the investment of municipal bond proceeds by some of Wall Street’s biggest firms. The probe has yielded 20 indictments so far, with defendants coming from institutions including Bank of America (BAC, Fortune 500), JPMorgan (JPM, Fortune 500) and UBS (UBS).

The three men sentenced Thursday formerly worked at General Electric’s (GE, Fortune 500) GE Capital unit, where prosecutors say they colluded with counterparts at other firms to rip off bond issuers. Two men—Dominick Carollo and Peter Grimm—received three years in prison, while the third, Steven Goldberg, got four years.

Prosecutors had requested 10 years in prison for Carollo, as well as up to 12 years for Grimm and 17 for Goldberg.

How the scheme worked: When states and local governments issue bonds, they usually don’t spend all the proceeds right away. To figure out how to invest the extra money, they hire brokers who manage a bidding process among financial institutions competing for their business.

Bids are solicited from firms like UBS and JPMorgan, which submit the interest rates they’re willing to offer on the extra bond proceeds. The winning institution, generally, is the one that offers the highest rate of return.

In cases like that of the former GE executives, prosecutors say the process was corrupted when executives from different firms conspired with one another, dividing up business in advance and devising their bids in cooperation, a practice known as bid-rigging. This allowed the winning bidders to offer issuers lower rates of return than they would have secured through an honest process.

Read more…