Saturday, March 5, 2016

Banks: Beacons of Fraud

Money is a game and not everyone plays by its rules. It’s an issue that has neither excelled nor subsided in the past and present decades but it’s still something that haunts the back of everyone’s mind from the first time they open a bank account to the first bank loan. As unfortunate as it may sound, banks represent beacons of trust and security, ironically these same foundations are the ones that are involved in most of the money scandals taking place daily around the world. This act of treachery is what festers the fear that the closer people are to money the easier it is for it to corrupt them.

The ways in which banks have been found to take money from its own clients are plenty, some of them have so far been brought to the surface after enough time has passed and enough damage was done, while other schemes are still hidden between the fine prints of bank official statements.

Switzerland was brought to the forefront after its own National Bank was discovered to be charging its major depositors an interest rate of -0.25%. How this worked is that the bank regulators had taken the entire idea and expectation of gaining interest after a period of time and shifted it into the bank being the one that gains money from client’s deposit.

Banks are seldom linked to a county’s economic crisis however in more than enough cases it has been proven that the bank system has also been one of the seeds that planted a county’s downfall. Many banks throughout the globe are guilty for giving out loans to both companies and individuals who are obviously incapable of paying back the debt with or without interest. The grand financial loss keeps the banks unshaken but stirs the entire confidence and feeling of security in large investors.

There is no wonder why tension is constantly residing in front of bank counters as the lists of plots deepens and darkens. Some banks have shown no respect to their own international security laws and are often seen to allure investors into making sales or purchases based on false information provided by the bank representatives themselves, causing multiple investors to lose a substantial amount of capital with very little proof of the scam that took place.

The image of banks as trustworthy and stable institutions in an otherwise unstable and liquid world is often built on nothing more than false financial reports created and presented by the banks in order to shield in most cases any illegal activities that are occurring within the bank but to also keep any suspicions away regarding the bank’s standing often leading to bank’s abrupt downfall and a huge loss in all their clients. 

Tax evasion is the most common and shocking charge banks are guilty off. Most fraud cases revolve around the complex and intricate motions banks involve themselves in to avoid carrying out the responsibilities they have to their own or other governments, which bank CEO’s found to be stashing away millions of their own investors’ funds in offshore accounts.

It’s a great shame how countless acts of falsehood are what make up the image of bank’s today but this does not include all banks and it also does not include everyone who is involved in the money business. It’s important for anyone, new or old in the game to make sure he knows and looks through all the regulatory information in any establishment that is involved in their funds and to make sure that they read every detail of the terms and regulations especially the ones kept in the fine print.

 M Samer Al Reifae

+40 734 277 757

 Do your own due diligence. 
No one knows tomorrow's price or circumstance. 
 I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader. 
I do not accept responsibility for being incorrect in my speculations on market trend.