Earlier this year, US and European banks — the ones that were too big to fail — settled US$18 billion worth of fines with regulators. These fines were for money laundering activities, breaching sanctions violations, and manipulating the Libor (London interbank offered rate). The Libor is used to set interest rates on about US$800 trillion of borrowings and derivative contracts.
If you want evidence that the corporate rich are turning “sustainable” into a dirty word, then consider the recent award won by Australian bank Westpac. At last month’s World Economic Forum in Davos, Switzerland, the bank was named the most sustainable company in the world.
The ANZ announced a full-year cash profit of $6.5 billion on October 29. Two days later, the NAB posted a profit that was not quite so big. It had only managed $5.94 billion in the year to September. Banks make their profits in a number of ways. One is a sort of bankers’ version of two-up, betting on foreign exchange rates. This is the world’s largest market. Reserve Bank of Australia figures for April put the average Australian foreign exchange turnover at US$181.7 billion a day.
The Forbes Billionaires list released last month included almost two dozen Australians in its ranks. Among them was mining boss Gina Rinehart, who has now become the richest person in Australia with a fortune of $17 billion. This placed her 36th in the world, but her net wealth was still double that of her nearest fellow Australian billionaire, chief executive of commodities firm Glencore, Ivan Glasenberg. Also on the list were finance elites, gaming kingpins and several other mining corporation owners.
Reporting on the release of the mid-year budget update in the Canberra Times on October 22, Peter Martin wrote that “Tax collections from both wages and the GST are running ahead of projections. Dramatically lower company tax collections account for most of the $21 billion write-down.” Included in that $21 billion is a revenue downgrade of $4.3 billion dollars over four years in resource rent tax from petroleum and mineral extraction from a projected $13.4 billion.
One of the sneering jokes passed around business circles after mining giants BHP Billiton and Rio Tinto announced they would not pay a cent this quarter under the Gillard government’s pathetic mining tax was that the government would have collected a fat cheque had it levied a super profits tax on the big banks instead.
US gangster Al Capone once said: “Capitalism is the legitimate racket of the ruling class.” 19th century US president Thomas Jefferson said: “Banking institutions are more dangerous to our liberties than standing armies.” These quotes capture the bastard nature of the dangerous racket that is the Australian banking cartel. See also: Socialist candidate says fight private bank ripoffs
Nurses in Victoria are being threatened with an Alan Joyce-style lockout because they have campaigned for a modest 3.5% pay rise (just to keep up with the rising cost of living), superannuation and overtime improvements, and keeping patient-to-nurse ratios. Australia’s four big banks, meanwhile, have announced a combined annual profit of $24.4 billion, up 12% from $21.7 billion a year ago. This speaks volumes about the grossly distorted priorities in our society.
At last someone has dared to defend the oppressed people of the British banking community. Bob Diamond, chief executive of Barclays bank, who himself has to suffer the trauma of an £8 million bonus, said yesterday that the bankers’ “period of remorse and apology should be over”. And you feel his pain, because the first words to cross your mind when you see a banker are “remorseful and apologetic”.
Britain: Goldman Sachs gives huge bonuses “Bankers were accused of ‘sticking two fingers up to austerity Britain’,” the British Guardian reported on January 19, “after it was revealed that [Wall Street bank] Goldman Sachs had handed its staff a £10bn payday as new figures showed unemployment among Britain's young people had hit its highest level since modern records began”. The article said data from the Office for National Statistics showed that one in five people under 25 were out of work by the end of November last year — a total of 951,000 people.