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Wall Street Bailouts

01.10.2008
 
Pages: 12
Wall Street Bailouts

by Mark S. McGrew

Any business that has to depend on tax write-offs, or bailouts or any other benefits from a government agency should not even be in business. Why should I have to pay for someone’s incompetence or fraud?

If they are incompetent, they should be put out of business. If they commit fraud, they should be put in jail. That goes for everybody, businessmen, newscasters, politicians, school teachers, priests. Anybody!

Trust is what makes civilization function. When that trust is destroyed, lives are destroyed and in turn a functional society is destroyed.

98% of Americans are totally against the Wall Street bailout. It is a license to defraud. American people, contrary to some articles I have read here recently are good, decent, honest, law abiding citizens who respect all cultures. And I can prove it, right here, right now:

When a Life Insurance company sells a small life insurance policy, under $100,000, they do not ask for a doctor’s physical examination of the goods they are insuring. They take the applicant’s word that he is in good health. If most applicants were lying, the insurance company would go broke. It is that simple.

Our politicians do have some serious defects in their mental capacities. The State of Delaware, about 15 years ago passed a law that the Legislature can lie. There is no crime and no punishment for lying by Delaware legislators. The only thing that backs American money is: “The full faith and trust of the United States of America.” When that trust is gone, our economy is gone. Our dollar bills are gone. Our respect among Nations, what’s left of it, vaporizes.

Our corporate CEOs are dismantling America’s corporations by lying, stealing, producing faulty products and anything else they can conjure up, with no penalties. LaSalle Law School, for over twenty years has taught that crime is acceptable, depending on the price to pay against what you earned. Fifteen years ago, America Online internet provider, double billed 12 million customers and got caught. The penalty? $250,000. The reward? Twelve million customers times $12 made them $144,000,000. Minus the $250,000 fine.

In 1974, the largest bank in the State of Delaware, was committing fraud against its borrowers. The fraud was on the customer’s loans. Credit Life Insurance is a type of life insurance that is used to pay off a person’s loan if that person dies. The maximum amount of Credit Life Insurance that any one person could have on their loan, regardless of the amount of the loan or the number of loans, was $20,000. That means if a person were to borrow money to buy a car for $15,000 and then buy a boat for $15,000, Credit Life Insurance, even though $30,000 worth of premiums were being paid, would only have to pay off $20,000, which would mean the person’s wife would have to pay off the other $10,000. This was free money for the Life Insurance Company and the Bank, since the Bank was earning a commission from the premiums paid by their customers.

Hundreds, maybe thousands of customers were paying premiums for insurance that would never be paid in the event of their death. Many customers had hundreds of thousands of dollars of worthless insurance, even though they were paying the premiums.

A young man in the life insurance business discovered this “error” and notified the President and the CEO of the bank. They both told him to mind his own business. He pointed out to them that it was his business because family and friends of his were going to lose their homes and businesses if someone died and no insurance was paid. He was told to leave the bank and not come back.

He went to the Insurance Commissioner of the State of Delaware and was told to mind his own business. The State of Delaware owned 50% of that bank.

The 23 year old man went to the Attorney General of Delaware and was told the same thing. He went to the several newspapers in Delaware and they told him the same thing.

He went to newspapers in Washington, DC, Philadelphia and Baltimore. After the newspapers made a few phone calls, they told him that he could be arrested for libel and slander.

About to give up, this man was walking in New York City one day, passed a small dirty newspaper office and went in and told his story. They printed it.

Then the Baltimore, Washington, Philadelphia papers printed it. There was a run on the bank. Depositors lined up to take their money out. The bank’s stock fell from $32 a share to $3 and trading was suspended.

The Bank closed and 55 executives went to court and were banned for life from working in a bank. Some went to jail. The State of Delaware lost a lot of their own money and State employees had to go for weeks without getting paid.

This was Farmer’s Bank of the State of Delaware, one of the oldest in the state and Delaware was the first State to ratify the United States Constitution. After 200 years of conscientious management of their customer’s money, the bank ceased to exist. Because of one year of fraud.

Such was the price of committing fraud. And in the end, the only people who were hurt were the crooked bank officers and the crooked State employees who tried to hide the fraud.

Pages: 12
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