Apsect 2 - Bank scandals and The government's involvement
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FDIC: A History of Confidence and Stability

FDIC: A History of Confidence and Stability | Apsect 2 - Bank scandals and The government's involvement | Scoop.it
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Jonathan Ungerman's comment, April 7, 2014 8:00 AM
The bank failures scared many citizens. They rushed to their banks in order to withdraw their deposits so they would not lose their money. This was ethical due to the $1,300,000,000 lost between 1930 and 1933 due to banking failures.
Jonathan Ungerman's comment, April 7, 2014 8:08 AM
The Banking act of 1933 temporarily put the FDIC into control over the banks. The FDIC was able to start insuring deposits up to $2,500 dollars and also regulated the banks in the country. The FDIC showed progress and lowered the amount of bank failures in 1934 and 1935. The banking act of 1935 made the FDIC a major authority and made it a permanent agency.
Tami Yaklich's comment, April 10, 2014 8:40 AM
These are LATE
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Who's Jordan Belfort? I'll Tell You Exactly Who He Is

Who's Jordan Belfort? I'll Tell You Exactly Who He Is | Apsect 2 - Bank scandals and The government's involvement | Scoop.it
Jordan Belfort is the biggest Wall Street crook you've never heard of. He was the king of funny business (not in the ha-ha way) during the bull market of the '90s, nicknamed "The Wolf of Wall Street." I profile Belfort on "Business Nation" this month, and you'll learn how he created a brokerage called Stratton Oakmont which functioned like a cult.
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Jonathan Ungerman's comment, April 3, 2014 1:15 PM
Belfort hired any broker who would do exactly what he told them to do. Most brokers were inexperienced and some had little education, they just wanted to get rich. The brokers were even told to read pre-written scripts over the phone while trying to make sales. They were using the strategic, yet illegal, practice known as the pump and dump.
Jonathan Ungerman's comment, April 3, 2014 1:23 PM
Through it's illegal practices, Stratton Oakmont was able to make each of their brokers extremely rich. With having all the money in the world to spend, Belfort and other employees lived a life full of parties, drugs, and luxury items. The only thing they worried about was if their scandal of securities fraud and money laundering would catch up to him at some point and put him in jail.
Jonathan Ungerman's comment, April 3, 2014 1:29 PM
In 1998, Belfort was convicted and sentenced to four years in prison but only served 22 months due to his cooperation with the FBI. His cell mate then inspired him to write his story and publish a book. Now that he's out, there is controversy whether he has been loyal to paying back over 200million he had cheated people out of.
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FDIC: Enforcement Decisions and Orders - Introduction

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Jonathan Ungerman's comment, March 5, 2014 9:36 AM
The FDIC watches over different banks such as state banks and foreign branches. They also watch over the people who work in the banks like employees, officials, and directors. The FDIC's job is to make sure that these banks and employees are not breaking any laws and are regulating efficiently. Any proof of law breaking or poor regulation may result in the removal of these people.
Jonathan Ungerman's comment, March 5, 2014 9:40 AM
The FDIC has the authority to close down any bank. They can do this if the bank is breaking any law, rule, or regulation. The bank may also be closed down if it is in a poor economic state. This occurs if the bank is using unsafe banking practices.
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1992_5%20Rubbergate,%20Congressional%20Disgrace.pdf

Jonathan Ungerman's insight:
Rubbergate is known as the scandal that took place in 1992 involving thr U.S. Congress. Many congressmen risked their political careers to take place in this check bouncing scandal. The house has not lived up to the American citizen's expectations after taking part in the scandal.
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Jonathan Ungerman's comment, March 4, 2014 9:33 AM
The house does not have its own bank. Members have the opportunity to contract money from a bundle of funds. Congressmen are entitled to take loans from this pool of money.
Jonathan Ungerman's comment, March 6, 2014 9:39 AM
The American citizens had a corrupt mind towards the politicians of that time. Citizens used to think of politicians as a higher power, promising riches and good health to all. After Rubbergate occurred, citizens now see them as selfish, only worrying about their wealth and taking every chance they can to better their lives.
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Pump And Dump Definition | Investopedia

Pump And Dump Definition | Investopedia | Apsect 2 - Bank scandals and The government's involvement | Scoop.it
A scheme that attempts to boost the price of a stock through recommendations based on false, misleading or greatly exaggerated statements. The perpetrators of this scheme, who already have an established position in the company's stock, sell their positions after the hype has led to a higher share price.
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Jonathan Ungerman's comment, April 7, 2014 7:40 AM
The pump and dump scheme is completed by falsely advertising the future progress of a stock in order to up the price of the stock. One must already own a majority of the stocks shares so when the price is raised they can sell all their stocks. This practice breaches many security laws and can lead to many fines. Once the shareholder with the majority of shares sells their shares, the price of the stocks plummets, thus making the investors who were tricked into buying this soon to be thriving stock lose a substantial amount of money.
Tami Yaklich's comment, April 10, 2014 8:41 AM
LATE
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FDIC: Bank Secrecy Act and Anti-Money Laundering

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Jonathan Ungerman's comment, March 6, 2014 9:26 AM
The FDIC has stated that banks must go through certain steps in monitoring bank security. The bank must follow these regulations in order to work sufficiently. The FDIC conducts examinations at each FDIC sponsored bank.
Jonathan Ungerman's comment, March 6, 2014 9:30 AM
The Bank Security act was put in place in order to make sure banks are working safely. It was put in place to make sure that banks involved in money laundering or any other act breaking the BSA's expectations would be investigated. Any breaking of these laws may lead to losses in capital gains or the closing of the institution.
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Justice Dept. Sues Bank of America Over Mortgage Securities

Justice Dept. Sues Bank of America Over Mortgage Securities | Apsect 2 - Bank scandals and The government's involvement | Scoop.it
The government accused the bank of defrauding investors by vastly understating the risks of the mortgages backing about $850 million worth of mortgage-backed securities.
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Jonathan Ungerman's comment, March 4, 2014 9:40 AM
The Bank of America was sued by The Justice Department. The bank did not warn investors about the risk of certain mortgages. The mortgages came out to be around $850 million in securities.
Jonathan Ungerman's comment, March 4, 2014 9:44 AM
One employee said she was told to make sure the loans were accurate. The employee kept her comments to herself whether she thought the loans would work out to the investors advantage or not. She took no time to go through the disadvantages of these loans.
Jonathan Ungerman's comment, March 4, 2014 9:47 AM
Investors were led on to believe that their loans would be successful. This is why the lawsuit is in place, they were not warned about the dangers in taking these loans. 5 Investors lost a total of $100 million.