New target for 419 fraudsters: Struggling 'weak' banks Desperate banks have become the target for so-called 419 advance-fee fraud scams. Increased regulatory scrutiny in the wake of the credit crunch and subsequent banking failures might be expected to deter banks from entertaining investment or deposit offers that come with up-front fees, payable by the bank, attached. But many …
Parliamentary investigation committee,
'Mr Diamond at what stage, as CEO of one of the largest banking groups did you decide that investing in Ripemoff Ltd would be a good idea' asked Keith Vaz MP.
'Well Keith it was like this, we needed the cash right, we needed it quick cos you we're about to investigate us like'
'At what point did you realise the investment was a mistake?'
'We tranfered the money and then tried to contact this guy called Mr F Ewe, but his phone was cut off...'
'Silly thing to do don't you think?
'No way, it was a great opportunity to use other people's money to gamble a bit on the markets you know'
'Didn't work did it Mr Diamond'
'Come on Keith, like you never took a chance...'
'
People keep saying this, it's really not true.
The government didn't drive a dump truck full of money to the banks doors and just drop it off.
There's plenty of strings attached, the government has either extended them large loans which will have to be repaid + interest (so joe public get their money back and then some) or has bought the banks stocks and will hold onto them until they rise back up and can be sold on for a healthy profit.
Unless the bank completely collapses the public money is safe and even earning us a little.
You'd expect bankers to be wise to this sort of shenanigan...
No, I wouldn't, and I wonder why anyone would. Just look at some of the other victims of 419 scams, like Thomas Katona or Ann Marie Poet. Those are financial professionals who not only fell for advance-fee scams but then embezzled millions from their employers to participate in them.
Working with money does not automatically confer financial wisdom, or even good sense.
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