Follow @PoliticsIE
 
 
 
Results 1 to 10 of 10

Thread: Why did'nt the FBI/CIA monitor Lehman Bros Bank?

  1. #1
    Politics.ie Member redneck's Avatar
    Join Date
    May 2007
    Posts
    5,939
    Mentioned
    1 Post(s)

    Default Why did'nt the FBI/CIA monitor Lehman Bros Bank?

    Looking back on the events of Sept. 15th 2008, I often wonder where the "mighty" FBI or CIA were? It seems that once again, they were caught offside. That is they did'nt see the bankruptcy and resulting financial meltdown coming. Apparently all their focus was on the Islamic fundamentalists. The war on terror was their chief aim.
    Political interference from the Bush administration was one of the reasons. To a lesser extent MI5 in the UK were also caught out.
    Was a class issue also involved? Wall street and the City of London were basically white collar-so deemed to be ok. Anyway I hope the intelligence and security services start looking beyond the usual suspects, and get their acts together.

  2. #2
    Politics.ie Member Thac0man's Avatar
    Join Date
    Aug 2006
    Location
    Kildare/Dublin
    Posts
    6,475
    Mentioned
    0 Post(s)

    Default

    Watching Lehmans Bank was the job of the US financial regulator, who in turn could only apply the rules (or fail too) laid down by the US government. Both the FBI and CIA are not financial watch dogs. Are MI5/6 responsible for the wreckless activity of the Northern Rock bank? The question posted in the OP seems to be 'why is everything conceivable not the fault of the CIA/FBI?'. The answer is simple: its not!

  3. #3
    Politics.ie Member Sync's Avatar
    Join Date
    Aug 2009
    Posts
    27,590
    Mentioned
    2 Post(s)

    Default

    The OP is a happy mixture of not understanding what happened at Lehmans and not understanding what the CIA/FBI do for a living.

    Using his "logic" The Austrian Police should have stepped in and prevented the collapse of HGAA right? After all, they weren't focused on Islamic terrorism right?
    I'm living in America, and in America, you're on your own. America's not a country. It's just a business. Now f***ing pay me.

  4. #4
    Politics.ie Member roc_'s Avatar
    Join Date
    Dec 2009
    Posts
    5,826
    Mentioned
    0 Post(s)

    Default

    They knew Lehman's was coming. They knew what was happening with the system. They had already backstopped a couple of impeding bank failures. I think they decided to let Lehman's go because that it how capitalism is supposed to work, and they thought it could fix itself. However, they did not realise at that point how all the derivatives and CDO swaps were all linked together, and the cataclysm that would be triggered on letting a big bank go - remember, Lehman's was not that big in the scale of things, really... But what looked like it was going to get affected were Credit Default Swaps, a USD 58 trillion dollar market, which was a subset of all Derivatives - a USD 1,144 Trillion market! That is why after Lehman's they decided that banks were too big to fail - really it was this collossal derivatives market was too big to fail.
    “Words are animals, alive with a will of their own”.

  5. #5
    Politics.ie Member redneck's Avatar
    Join Date
    May 2007
    Posts
    5,939
    Mentioned
    1 Post(s)

    Default

    Quote Originally Posted by Thac0man View Post
    Watching Lehmans Bank was the job of the US financial regulator, who in turn could only apply the rules (or fail too) laid down by the US government. Both the FBI and CIA are not financial watch dogs. Are MI5/6 responsible for the wreckless activity of the Northern Rock bank? The question posted in the OP seems to be 'why is everything conceivable not the fault of the CIA/FBI?'. The answer is simple: its not!
    Maybe I am watching too much TV and films, but as far as I can see any criminal activity in the US means FBI involvment. Regarding MI5 have you ever seen a James Bond film, the bad guys are always Billionaire types, trying to undermine the system. Eg Mr Goldfinger, Mr Blofield in Diamonds are forever., Live and let die, etc. I sincerely hope the UK/US security services are monitoring the likes of Rupert Murdock, Sir Antony O Reilly, Warren Buffet, Rothschild etc aswell as the Islamisists.

  6. #6
    Politics.ie Member Sync's Avatar
    Join Date
    Aug 2009
    Posts
    27,590
    Mentioned
    2 Post(s)

    Default

    Quote Originally Posted by redneck View Post
    Maybe I am watching too much TV and films, but as far as I can see any criminal activity in the US means FBI involvment. Regarding MI5 have you ever seen a James Bond film, the bad guys are always Billionaire types, trying to undermine the system. Eg Mr Goldfinger, Mr Blofield in Diamonds are forever., Live and let die, etc.
    You really have. There were concerns about how the bank was doing prior to the collapse, but no (to my knowledge) concerns about illegal activity. The Repo105 concerns only emerged after a detailed court appointed examination. There's nothing the FBI or NYCPD (It would be them as opposed to the CIA) could have done. You can't just start a criminal investigation into every failing company.

    A more interesting question is what a guilty plea or finding in the Lehmans repo case would have on E&Y. Would they be viewed as a criminal organsation? If further investigation showed other such instances, would they fall fould of RICO?

    I sincerely hope the UK/US security services are monitoring the likes of Rupert Murdock, Sir Antony O Reilly, Warren Buffet, Rothschild etc aswell as the Islamisists.
    So you're comfortable with the US/UK spying on foreign individuals who aren't suspected of any crime?
    I'm living in America, and in America, you're on your own. America's not a country. It's just a business. Now f***ing pay me.

  7. #7
    Politics.ie Member ONQ's Avatar
    Join Date
    May 2009
    Location
    Dublin
    Posts
    476
    Mentioned
    0 Post(s)

    Default

    I'd be happy to see them spying on Goldman Sachs at any rate.

    They were at bottom ow the Greek Loan matter, where an enormous debt was disguised as a "sale of currency" or so I understand.

  8. #8
    Politics.ie Member roc_'s Avatar
    Join Date
    Dec 2009
    Posts
    5,826
    Mentioned
    0 Post(s)

    Default

    ... USD 1,144 Trillion is 22 times the GDP of the whole world. That is why this derivatives market will be protected whatever the cost, until it has unwound to a managable size. Then, I reckon, banks will be allowed to fail again.
    “Words are animals, alive with a will of their own”.

  9. #9
    Politics.ie Member Thac0man's Avatar
    Join Date
    Aug 2006
    Location
    Kildare/Dublin
    Posts
    6,475
    Mentioned
    0 Post(s)

    Default

    Quote Originally Posted by Sync View Post
    So you're comfortable with the US/UK spying on foreign individuals who aren't suspected of any crime?
    As long as its done in Casinos in Monte Carlo and with nifty gadgets like invisible cars and lazer Rolex watches. While political debate is firmly rooted in the realm of farce, I strongly recommend this:

    [ame=http://www.youtube.com/watch?v=Bu5kX2hwDgk]YouTube - Agent Suave[/ame]

  10. #10
    Politics.ie Member redneck's Avatar
    Join Date
    May 2007
    Posts
    5,939
    Mentioned
    1 Post(s)

    Default

    Certain countries have no qualms about stealing and faking passports, stealing trade secrets and so on. It is a fact. It is also a fact that Lehmans collapse involved criminal accountancy practices involving huge amounts of money. Fraud in ordinary language. Until the people involved are charged with this- Wall st, the City and so on will not change.
    How to charge some of these people, well the FBI/CIA are masters at undercover work, surveillance and collecting evidence. My point is if there is ever going to be a change in banking/financial practices other ways of prosecution will have to be tried. Not the Financial regulator issuing of warnings way. Finally the Italian Mafia was broken by the FBI so it can be done.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •