How a $450 Million Loss Was Hidden From Sight
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- Опубліковано 28 вер 2024
- 11 years after one of Europe’s biggest banking scandals, 13 executives have been sentenced and financial penalties of $175 million have been dealt. Bloomberg investigates how Deutsche Bank and Monte Dei Paschi cooked their books to make a half billion dollar loss disappear.
Reporting by Elisa Martinuzzi
For more about the Monte Paschi scandal:
www.bloomberg....
#BWStorylines #TrueCrime
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For more about the Monte Paschi scandal: www.bloomberg.com/opinion/articles/2019-11-11/why-deutsche-bank-s-monte-paschi-scandal-still-matters
sadly all the hedge fund and banker that caused the various financial crisis always get tax payer bailed out and company bonuses after making tax payer clean up their mess.
This is boring
This was fascinating. Thank you.
I think the whole system is run by convoluted and complex accounting, 2008 bailouts were just the system trying to stay alive. Imagine if every year the units of measure changed mm, cm, m, km, it would be chaos, but economics can get away with its basic unit of measure, aka money, rapidly appreciating and depreciating, central banks are not independant, how can they be when they are run by people. Eventually this house of mirrors is gonna break and thank goodness we have nukes this time around, so hopefully we dont go full retard and have WW3.
should we be hearing about the punk jargon that rides this code base
Wealthy, powerful people know that complexity is the best way to hide failure and greed.
Well said.
What makes me laugh is people are astonished by such things. If you think this scandal is big, just imagine what's happening behind the scenes with the Federal Reserve and Wallstreet in the USA. The majority of our national and individual debt is the result of the greed of those two institutions.
At this point the FED is a prime suspect
Thats why taxes are so complicated.
Daveycrocker44 not really companies like TurboTax Lobby the congress not to overhaul tax law complexity
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The strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off.
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One of the fiduciaries I deal with is Alicia Ann Jordan. Just check the name. There would be a letter with the necessary information to set up an appointment.
Made $450 million lost disappear, but only got a $175 million fine, I believe that is a good deal.
Timing is crucial. Loss is loss, but at the time $450 milion would mean no support from the government and thus decline of institutions.
This is why white collar crime continue to flourish.
175million$ fined is applied after they confiscated the 450million$
Thats an even better deal when you think of the fact that 450 million dollars in 2008 is worth 530 million now
That's a far better deal than trumpy ever made!
Bloomberg we would like to hear more of such financial wrongdoings. The brexit one was good to. Make more of these!
Exactly
.
@Martin Shepherd I asked myself thesame question
You owe the bank a couple thousand you've got a problem. You owe the bank a couple million the banks got a problem.
Murica: hold my 30billion debt. :v
One thing I'm learning in this era, if you want to commit a high paying crime with minimal punishment... do it in banking.
Or Politics !
White collar business crime, make billions and pay millions in fines.
The banks and bankers never go to jail. They’re never held accountable. It’s always the common man who is made to suffer. It’s appalling.
Bank losses 450 million. Also bank: "Tis but a scratch !!!"
Lanoroth check out the FEDs QE schedule over the next few months 😂
Makes you wonder how many such cases are hidden in plain sight and will never be unraveled to the common man...
Regulators understand exactly what they’re doing. It’s just not in their interest to do something about it.
Too big to fail , too big to jail , the brinkmanship between regulators and financiers where the former always blinks first .
They're illegal transactions for a reason, there's always a victim , in this case it's the population of Italy and beyond .
Trust businesses they say... trust the invisible hand they say...
"They couldn't admit the loss they had to face."
Couldn't? Or wouldn't?
Is it just me, or did they not just literally report absolutely nothing, i literally didnt hear any significant wrong doing
A couple planes crash into buildings and a trillion dollars of missing money at the Pentagon is instantly forgotten.
People do time company’s pay fines
If there’s a lesson for you out there is that greed is everywhere and that you are naive to think that people are saints or can be regulated.
greedy corporations 😢😢
the system will always always be corrupt
I send 10 of my Paintings to Monte Dei Paschi & Problem Solved ...Just say the Word
Lol
@@Ambyfigureitout lol
It is NOT up the politicians. It is up to the markets. They should be self-regulating but capitalism has failed. The money flows are now so great that the idea of "self-interest" has be replaced by greed.
$450 million might have been invested in brexit and syrian war.
That’s the gambling reporting rules. If you take a list from gambling, you can deduct the loses from your gambling winnings.
Complex steal more like, financial shenanigans have become the way of the world.
This is Wolf of Wall Street PART 3
What was part 2?
I thought they were going to talk about Salvador Mundi that MBS bought at a similar price
very high quality reporting and production
It's called manipulation. Hype the stock and than short the stock.
All in a days work!!...breaktime!!!
Fiat currency is so 20th century. 🙄
Uhhhh. Fiat currency is a big reason why the Great Recession wasn't deeper than it was. It gave central banks far greater leeway to do what was necessary.
Country Debt payback to the crown! They likely to sabotage internet based coins risky bit coins dropped from massive high
This story doesn't make the evening news but its as important as anything else out there.
Problem starts when you have bank regulators as banking people.
A Bank losing 450,000,000 ? Not possible. Please think or rephrase - they cannot find the PRINT button
wow, greedy banking crooks got away with financial crimes. Look like Italy is heading for next wild ride -- The Europe's Great Depression. We will be seeing bail outs and riots in Italy just like Hong Kong riots. This should never happened. The crooks should be thrown in jail.
I like how this man criticizes Italian government for not being to hard when in America none of the bankers that cause the US realty collapse were prosecuted but we will look past that huh America is the victim
Bloomberg at its best!
Bankers going to jail? Hold on let me drink something so I can spit it out
Oh wow $175 million what a crack down ....
How does this help a 9-5 person doing the right thing...😩😫
Rich peoples problems...😕
I watched the whole video and I still don’t understand what the crime was
They were trying the hide the fact there was huge losses.
@@jewellui By taking loan from another bank and not stating that in their books & to the public - investors
It was mentioned in 9:15 that even a CFO wouldnt understand this and you need a PHD in charge. Well instead of putting the burden on a CFO to be PHD to know this, how about we simplify transactions. Accounting and financial reporting are so simple. You have got ssles, margin, income, working capital, equity, loan. The fact that we have transactions or products so complex that its hard to know what kind of an animal they are just shows how much of a fraud these things are. Everything in business world is common sense, you dont need high IQ for things to make sense and to do business. Complexity is what make something less understandable. If you dont understand it and you fell on dealing with it then you fell into the trap.
These people will never learn until they are on the pyre.
Do one about the Pentagon misplacing 10 trillion USD
I need a PhD to understand the transactions? How about a diploma to know how this actually happened?
"Yes it's true, the higher management often doesn't understand much at all actually."
Hmm might that be intentional, ie, the cloak of supposed plausible deniability.
If a person needs a PhD to understand these transactions then i am thinking about the qualifications of people who made those transaction.
Shanay it’s like throwing an Apple, the dumbest idiot can do it, but only the most educated people in really specific fields can fully explain all the processes behind it
@@willinton06 So setting up a complex accounting scheme unlike something ever done is as easy as throwing an apple and has not to be understood before inplementing. Ok.
Robin Östringer you need to be smarter than the Apple throwing idiot to set it up for sure, but way dumber than the guy who can explain all the processes that go behind it, at my firm this guy was an accountant for like 30 years, and we were going to be acquired so he had to explain lots of things to the new investors, and he ended up quitting when he realized how convoluted all of it was, how much he had riddled the process over the decades, he case back when the execs told him they would get a consultant to help him so it is a happy ending
Amazing, gonna have to keep this vid. How they both kept a straight face , would love to see the out takes. Projection is what this was all about , making out that checks & balances are going on , so that Faith and Credibility in banking is all above board. I could go on but what's the point , if people haven't got it by now, they probably never will.
I got it a long time ago and removed my funds from probably one of the largest bank systems in the USA; set it up in a small town with a large bank that has more assets than debt and intelligence as well.
How come the penalties are always leas then what they steal?! There’s no jail time so truly what’s the penalty, you only get half of what you stole?
Best legal system money can buy!
They didn’t steal money, this money would have been reversed. The bank was already in trouble, perhaps a larger fine would have caused it to collapse. In this instance it’s more about punishing the people who structured the deal.
9:35 Isn't that intentional? Plausible deniability.
A lot of shady money movements also happened in Portugal during the 2008 crisis, namely with BPN, BPP, BES...
How much was the total bailout in the US, FED and tax payers combined? 14 Trillions? And who went to jail in the US? This is peanuts.
i think they read about why 'A' STUDENTS WORK FOR C STUDENTS' BY ROBERT KIYOSAKI
Yes. 'C' students make 'A' students disappear.
their 'C' students are FIRST CLASS graduate from Harvard/Cambridge/Princeton while you reading nonsense from Robert K who knows very little about finance but selling his seminar and books.
Money is a scam .
Looks like a simple swap transaction. You win on today's leg and lose on tomorrow's. So the loss is rolled forward and spread out.
Lesson in white collar crime = If you are going to do it, do it Big!
Correction " AS BIG AS YOU CAN"
But what was the deal though?
It was just a loan to the italian bank but they committed fraud because they said that it was profit when it was just a loan
Hey Bloomberg, if you want to discover all shady deals of DB, you have to make a "discovery" like this every week.
Layering
welp, hold onto your seatbelts for the 2020 recession
Asset prices are drastically overvalued, low interest rates, and QE caused one crisis, we need another to reset asset prices. Bring it on, the sooner the better.
There were a number of things said in this vid that articulated the severity of the matter: 1. They should be arrested; 2. Concealed it in a multi-layered transaction that was like magic; 3. They concealed the disclosure of the loss from the public and shareholders; 4. They broke from generally accepted accounting standards and principles in Italy to do it. But there could be more to this story that would be coming from the other side.
cruel, violent financial criminals- not clever, I know the type, office dictators, cruel monsters
This should be a movie.
Italy - failed state. Rome not able to operate busses, collect and process the trash…. Only Northern Europe keeps this alive
hmm, I don't get it unfortunately
Why Don't the heads of these banks ever pay for there crimes
They government is involved and its just a slap in the risk.
For awe intensive per paces.
there will be too many people to question to make a good show thus nothing much will happen
I think deal with money you can't believe anyone
put them in the sewer and make them work it off
2:43 _What do I do with my hands?_
4:54 the camera person didn't do her any favors.
thats whats thy call "freeports'?
and how about the 2.3 trillion dollars missing since 2001? Why nobody talking bout it
Disgusting pigs. Its unfair to say "people no longer care.." what is somebody like me going to do? I care immensely, what should I do? Threaten to not use a bank? Oh no! They'll have to close! we need 100% of people on board to shutter their doors.
your closed captions are full of html XD
But when are they going to crash?
Anywhere there's financial irregularity check properly Deutsche bank is there
So This Is Where The Crash Started ?
The Four Horsemen Renegade Productions
Put It In To You Tube
Whatever...This happens EVERYDAY.
9:53 Buy Gold.
Not a very helpful piece about what really happened. Wish it had been longer and that this would have been explained in greater detail so a lay person like me could understand this crime better, like how it was really done. There must have been some “double accounting,” for lack of a better term, that would be interesting to hear more about.
Gangland
I guess Europe is learning the financial game. When US does something like that nobody cares but when Europe trying to save its companies everybody start to blame Europe. Stop taking side.
More of stories like these!!!!
You are a communist.
@@midshipsport I couldn't believe in capitalism more
@@Danielevans2 was joking or trolling :-)
Not surprised.......expected
what was the point of this clip since it explained basically NOTHING?🧐
8:33 ps5 sneak peak
"cok eets boks"
Pokémon cards help keep track sometimes
too bad they weren't in the US, the taxpayers would of foot the bill
tower of babel
Sounds a bit like RHI lol
Surprise, surprise! The rich gets richer and the poor gets poorer. Actually I’m not surprised.
She's very like Lauire Briem from Silicon Valley the Series
I like how the Europeans treat their news with maturity.
Bloomberg wont even investigate their boss , how can i trust you as journalist ?
Jo Molololo exactly Michael Bloomberg is corrupt too
I actually learnt nothing from this video.
NOTHING NEW, PROBABLY THIS TIME, EXACTLY SAME THING IS HAPPENING RIGHT NOW TO SAVE DEUTSCHE BANK, AND ALSO GENERAL ELECTRIC. AND LATER ON, JP MORGAN-CHASE
Adopt Crypto
My wife could easily make $450 million dollars disappear in less than a month.