web analytics

Interview with William Black

Written By: - Date published: 7:15 am, May 15th, 2016 - 30 comments
Categories: Economy - Tags:

Long time, regular commenter at The Standard, Travellerev, recently interviewed William Black. Travellev reports . . .
When plunder becomes a way of life for a group of men in a society, over the course of time they create for themselves a legal system that authorizes it and a moral code that glorifies it.” Frédéric Bastiat

 

About three weeks ago I was in the position to take part in an interview with one of my absolute global heroes. William Black, a renowned and successful financial fraud investigator in the USA and currently on the team of Bernie Sanders as his adviser in matters concerning Wall street and the international financial system, has been speaking out around the world against the current systemic fraud in our banking system and the lack of oversight and persecution of fraud!

William Black consented to a rare interview with a young local radio host after I put him on to William black and the host was generous enough to let me partake in the second half.

William Black has a long illustrious career as a financial investigator and as a banker hunter he has been incredibly successful with some 1000 convictions leading to jail time for bankers involved in financial fraud.

He also wrote a book which deserves the attention of everybody interested in the financial system. It is called: The Best Way to Rob a Bank Is To Own One

William Black and his investigative team developed a concept which is used to describe what happens when people in positions of power use the tools handed to them to corrupt the system they have control over. They termed it Control Fraud and this is what it means:

Control fraud occurs when a trusted person in a high position of responsibility in a company, corporation, or state subverts the organization and engages in extensive fraud for personal gain. The term Control fraud was coined by William K. Black to refer both to the acts of fraud and to the individuals who commit them. Wikipedia

William Black in several articles also wrote in detail how banks, most notably Merrill Lynch, used a beautiful model of fraud, starting as early 1990 (Before John Key started to work for them in ’95) all the way into the noughties when the bank in 2008 spectacularly collapsed under the weight of the derivatives it had on its books.

He describes the system as follows:

If you’re a lender there’s an easy recipe for maximizing fake accounting income. And it goes like this. You need four ingredients:

  1. grow like crazy

  2. by making really, really crappy loans but at a premium yield (yield just means ‘interest rate’)

  3. while employing extreme leverage, and

  4. while setting aside only the most trivial reserves or allowances for the inevitable losses this kind of behavior produces.

The trick is to do it quick and fast and get out before it collapses and it is only the top executives who get incredibly rich while the rest of the bank collapses.

So without further ado here is the interview. It starts at the second half of the two hour program but the first half is also available if you have the time. It is well worth listening to.

[youtube https://www.youtube.com/watch?v=BnATTosS-SY]

 

 

 

30 comments on “Interview with William Black ”

  1. save nz 1

    Great post. If American wants to ‘great great’ again they need to elect Bernie and get his fraud advisers in to root out corruption in their system. American corporations like banks and wall st and Kleptocrats are stealing from their own people and their own future.

    The West won the cold war because unlike USSR and others they put more effort into corruption controls and having a free media so ordinary people felt safe within the system. Unfortunately a fair and balanced system under extreme neoliberalism has ended.

  2. Nic the NZer 2

    Bill Black is well worth listening to.

    The similarities with Dick Smith collapse are relevant and striking (though its not clear fraud was involved there or not). Prior to listing DSE ran a strategy of selling down the inventory and not replacing it. This caused the company to report significant profits before listing on the share market. Sharemarket investors who brought in overpaid for shares and needed to recapitalise the inventory for the business to continue operating. If there was any fraud it was in the accounts put with the listing which didnt make it clear that the business carried little stock. At this time the listing company sold out before the problems became evident and locking in their profits before the share price collapsed. This kind of thing drives investors out of the Sharemarket no doubt.

  3. Nic the NZer, the same thing happened in Holland with the V&D chain and in England with the BHS chain. Both some 11.000 people lost their jobs.

    • dukeofurl 3.1

      Its going to be repeated here with the ‘media merger’, create a big candy floss which is sold to the public and collapses soon after.

      That was supposed to be Weldons job for Mediaworks too, but they put the cart ( someone who could do a stock exchange float) before the horse(growing the audience with successful programs).

      • dukeofurl 3.1.1

        Just thinking about TV companies like Mediaworks, they buy programs/series etc and they treated as ‘assets’ and normally once they are screened, they lose value very quickly, maybe a rerun a year later etc.

        But the books can be cooked , by not writing off programs that have been screened or more often than you would think programs bought but not screened.
        News shows are the worst sort of program, high cost and zero value the next day.
        But of course crap reality shows can be kept on the books for longer, until it comes share float time and the company can be ‘valued’ by its assets.

        You can see how the ‘accounting value’ can be a complete fake

        • Gristle 3.1.1.1

          From memory, most programmes were written down to 0 or at most 10% after the first play: even on a 3 play deal.

          The issue can be over output deals so you build up a library of material that you do not have either the intention of screening or physically don’t have airtime to put on before the license expires. And of course this material may represent 20% of an output deal. So you would be courting trouble if you put 20% value on this junk.

      • RedBaronCV 3.1.2

        Is there a strategy to stop this?
        Wouldn’t it be great to have a shareholder AGM that voted for a wage policy with strict upper level limits enabling the employment of more people at a reasonable wage, invite the staff to put up and vote for a couple of the board of directors – it would be great to invest in an ethical organization with a small steady return.

        • Colonial Viper 3.1.2.1

          Yes, we’re going to find a corporate shareholder meeting where the 1% minor shareholders alongside the 0.01% billion dollar hedge fund managers are going to suddenly start advocating to give away the value of their investment to the little people slaving away for them.

        • Nic the NZer 3.1.2.2

          In some places it used to be that the top execs and directors in certain industries based on trust (banking, accounting and legal) would have unlimited liability for their firms. This seemed to discourage a lot of this as the execs would keep an eye on how each was doing business.

          I think that should be brought back as a concept.

  4. Colonial Viper 4

    Awesome work Travellerev.

    Bill Black, an investigative veteran of the 1980s Savings and Loans scandal, makes it very clear how the subprime crisis was brought about and how the roots of the GFC were sown. And especially how the authorities have simply walked away from the problem.

    In the US Black makes a simple point: the financial system is regulated by authorities and law enforcement who do not believe in regulation or enforcement.

    Thanks again fo contributing this.

  5. Pat 5

    Well……

  6. stunnedmullet 6

    Looking forward to more of your posts here Travellereve.

  7. adam 7

    Nice, interview and good job.

    What a nice guy.

  8. whateva next? 8

    Many thanks Travellerev, so good to hear someone with knowledge AND integrity explaining this stuff

  9. Penny Bright 9

    Well done The Standard, Ev, Vinny and Bill Black!

    Vinny Eastwood is getting some internationally significant guests on his show, and they’re being given more than a short ‘sound bite’.

    I’d like to give Ev full credit for her years of research on our ex-Wall Street banker Prime Minister John Key, and look forward to a LOT more people paying attention to what she is saying.

    And I’d also like to give full credit to Vinny Eastwood to providing an ongoing opportunity for those active on the issues to have a chance to explain WHY we are doing what we are doing.

    That’s what ‘freedom of expression’ is all about – the opportunity to put forward a view that some may agree to disagree with.

    But where we don’t choose to agree – let’s keep it civilised.

    Debate the ISSUES – or agree to disagree?

    Hope you are given more opportunities to post here Ev!

    Cheers!

    Penny Bright
    2016 Auckland Mayoral candidate.

  10. Great interview, Travellerev. It’s not hard to make the connection from Libor to the City of London to the Crown. Key’s history in the banking industry shows him to be ideologically aligned with these financial predators.

    Interesting that Labour UK has recently has recently been conducting a witch-hunt over anti-semitism, with Londoner Ken Livingston very much in the limelight. Big money families like the Rothschilds having a fairly significant interest (if you’ll pardon the pun) in the operations of the City of London and in the use of the language of anti-semitism as a reaction to criticism of Zionism.

  11. fender 11

    Thank-you Travellerev for posting this. I found that highly educational and wish every voter in the country were made aware of how our PM fits into the puzzle.

    I’ve zero interest in reading the PM’s book, but it does seem odd that there’s no mention of derivatives in it. Surely he’s proud of his of his earlier “work”.

    • Fender,

      What is interesting is that the NZ Herald took 5 pages of the online version of an article which appeared in July 2008 of their website. That was the part of the “Unauthorized” biography article written among others by Eugene Bingham.
      The pages they took off were the pages in which they detailed his banking career.

      Maybe in a next post I can bring those pages back up because when I found the pages missing I went to the library and made a hard copy for future reference.

      It may be coincidence but they did so after I send them this article. An open letter to Eugene Bingham or would you have voted for John Key if you had known.

  12. Philj 12

    Well done and thankyou Travelrev. We have to tell the whole story to the public , somehow. Sigh. Keep up the good work.

      • Nic the NZer 12.1.1

        Think you should read through Bill Blacks article about 10 myths of neoclassical economics. It explains his position on deficits (and therefore govt debt) which was a question he didnt find time to answer during your interview properly.

Links to post

Recent Comments

Recent Posts

  • Government provides greater assurance to homeowners
    The Government has provided greater assurance for homeowners with the introduction of a new code of ethics for Licensed Building Practitioners (LBPs), Building and Construction Minister Poto Williams announced today.   The Code of Ethics, which comes into force in October 2022, sets behavioural standards for LBPs to give both ...
    BeehiveBy beehive.govt.nz
    2 hours ago
  • Supporting economic resilience in the Indo-Pacific – Speech to the Asia Forum
    (Check against delivery) Ladies and gentlemen, distinguished guests, kia ora koutou katoa Thank you Farib. It is a great pleasure to be invited to speak at this event. I want to acknowledge the on-going work of the Asia Forum. Over many years – decades, in fact – you have been ...
    BeehiveBy beehive.govt.nz
    5 hours ago
  • RSI ‘state of the nation’ report published
    New Zealand’s FCR cited research ratio is twice the world average Investment in R&D is increasing Case studies underscore how a science based COVID-19 response helped save lives In 2019, Māori and Pacific people represented 5 per cent of PhD graduates. The latest research, science and innovation system report card ...
    BeehiveBy beehive.govt.nz
    5 hours ago
  • Funding to translate science into real life solutions
    The Government is investing in ‘Te Tītoki Mataora’ the MedTech Research Translator, to deliver new medical tools - and meet both the demands of a global pandemic and of a growing and aging population. “COVID-19 has shown that we need to build a more resilient, productive, innovative and economically-sustainable health ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Tokelau champions language and culture
    COVID-19 continues to be a powerful reminder of the importance of language and culture to the wellbeing of our Pacific communities, said the Minister for Pacific Peoples, Aupito William Sio. “Our Tokelau community in Aotearoa has responded strongly to the challenges of the global pandemic by getting vaccinated and supporting ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Festival drug-checking services get a boost
    The Government is financially supporting drug-checking services to help keep young people safe at this summer’s large festivals and events, Health Minister Andrew Little says. “This is not about condoning drug use, but about keeping people safe,” Andrew Little said. “There is clear evidence that having drug-checking services at festivals ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Expanded vaccination order for health and disability, education and prison workers
    A newly-signed Order means most people working in three key sectors will very soon need to be vaccinated against COVID-19 for the sake of themselves, their workmates and their communities, COVID-19 Response Minister Chris Hipkins has confirmed. The extended COVID-19 Public Health Response (Vaccinations) Amendment Order 2021 comes into effect ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • APEC finance ministers focus on inclusive, sustainable COVID recovery
    APEC finance ministers will continue to work together to respond to the effects of COVID-19 and ensure a sustainable and inclusive recovery while capitalising on the opportunity to build a more resilient future. The New Zealand Minister of Finance and Deputy Prime Minister Grant Robertson chaired the virtual APEC Finance ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Improvements to child and maternity facilities at Timaru Hospital on track
    Improvements to child and maternity facilities at Timaru Hospital are well underway, and the next stage of the project will begin next month. Health Minister Andrew Little visited Timaru Hospital today to view progress onsite. “The improvements are part of South Canterbury DHB’s four-year refurbishment project and will create a ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Govt responds to independent review into WorkSafe
    The Government has clear expectations that WorkSafe must action the recommendations of the independent review into the regulator to improve its management of adventure activities following the tragedy at Whakaari White Island, Workplace Relations and Safety Minister Michael Wood says. The Ministry of Business Innovation and Employment (MBIE) today released the ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Prevention funding to reduce tamariki in care
    A new iwi-led prevention programme will receive funding from Oranga Tamariki to help reduce the number of tamariki and rangatahi coming into state care, Children’s Minister Kelvin Davis has announced. Te Rūnanga o Ngāi Tahu (Te Rūnanga) will receive $25.9m of Oranga Tamariki funding over three years to improve outcomes ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Transforming New Zealand’s mental health legislation
    Public consultation is now open for Aotearoa New Zealand to have a say on the repeal and replacement of the Mental Health (Compulsory Assessment and Treatment) Act 1992. “’He Ara Oranga, the report of the Government Inquiry into Mental Health and Addiction’ made it clear that we needed to replace ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • COVID-19 Protection Framework
    Kia ora koutou katoa Today I’m speaking directly to all New Zealanders to share a plan that will help us stay safe from COVID-19 into the future. A future where we want to continue to protect people’s lives, but also to live our lives – as safely as possible. Our ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Business boost to transition to new COVID framework
    We know that over the last twenty months the approach New Zealand has taken to COVID and Delta has saved lives and livelihoods. Along with one of the lowest mortality rates in the world, we have also had strong economic growth, low unemployment and one of the lower levels of ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • COVID-19 funding boost to protect maōri communities
    Tēnā koutou katoa As you have heard from the Prime Minister, the new protection framework will support us to keep people safe especially our vulnerable communities and minimize the impact COVID-19 has on business and our day to day lives. If you want to protect yourself, your whanau and your ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • New COVID-19 Protection Framework delivers greater freedoms for vaccinated New Zealanders
    New COVID-19 Protection Framework provides pathway out of lockdown and ability for businesses and events to re-open to vaccinated New Zealanders Simpler framework to minimise cases and hospitalisations without use of widespread lockdowns Auckland to move into the new framework when 90 percent of eligible population in each of the ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • New fund to accelerate Māori vaccinations
    The Government has established a $120 million fund to accelerate Māori vaccination rates and support communities to prepare for the implementation of the new COVID-19 Protection Framework. The new Māori Communities COVID-19 Fund will directly fund Māori, Iwi, community organisations and providers to deliver local vaccination initiatives for whānau, and ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Government extends hardship assistance for low income workers
    Income limits for Hardship Support through the Ministry of Social Development have been temporarily lifted so more people can recieve assistance. “Cabinet has agreed to make it easier for low income workers to recieve assistance for items such as food and other emergency costs,” Carmel Sepuloni said. “We know the ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • More support for learners with highest needs
    Students most in need of extra help in the classroom are the focus of a new review that gets under way today, Associate Education Minister Jan Tinetti says. About 50,000-80,000 children and young people are expected to benefit from a Ministry of Education review into Highest Need Learners that will ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Parts of Waikato to stay at Alert Level 3 for next six days
    The parts of Waikato that have been in Alert Level 3 will remain at that alert level till Wednesday, COVID-19 Response Minister Chris Hipkins said today. “Based on the latest public health information, maintaining level 3 in those parts of the Waikato continues to be the most prudent course of ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Hon Peeni Henare September 2021 Proactive Diary Release
    ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • NZ passes world-first climate reporting legislation
    New Zealand has become the first country in the world to pass a law that will ensure financial organisations disclose and ultimately act on climate-related risks and opportunities, Commerce and Consumer Affairs Minister Dr David Clark and Climate Change Minister James Shaw today announced today. The Financial Sector (Climate-related Disclosures ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Prime Minister NZ UK FTA opening remarks
    Tēnā koutou katoa. Ngā mihi nui ki a koutou katoa. I am delighted to announce today that following a conversation with Prime Minister Johnson last night, New Zealand and the United Kingdom have Agreed in Principle a historic high-quality, comprehensive and inclusive free trade agreement. I’m joined today by the Minister ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • New Zealand secures historic free trade deal with the United Kingdom
    A boost of almost $1 billion to New Zealand GDP, unprecedented access for New Zealand exporters to the UK market UK to eliminate all tariffs on New Zealand exports, with over 97% being removed the day the FTA comes into force NZ exporters to save approx. $37.8 million per year ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Quarterly benefit numbers show more people in work
    Benefit figures released today show a year on year fall of 9,807 people receiving a Main Benefit in the September Quarter.  “The Government is working hard to tackle COVID-19 and it is clear our strong response to the initial outbreak has created a resilient labour market which is providing opportunities ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Health reforms bill introduced to Parliament
    Legislation central to fixing the health system has been introduced into Parliament by Health Minister Andrew Little. “Rebuilding the public health system is critical to laying the foundations for a better future for all New Zealanders,” Andrew Little said. “We need a system that works for everybody, no matter who ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • NCEA and NZ Scholarship Exams to proceed
    NCEA and New Zealand Scholarship exams will proceed, including in areas where Alert Level 3 has been in place, Education Minister Chris Hipkins said today. “The New Zealand Qualifications Authority, Ministry of Education and Ministry of Health have been working together to ensure exams can be managed in a safe ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Limited change to onsite learning – for senior secondary students – in Level 3 regions
    Onsite learning at schools in Level 3 regions will start from next week for senior secondary school students to prepare for end of year exams, Education Minister Chris Hipkins said today. “Secondary schools in these regions will start onsite learning for years 11 to 13 on Tuesday 26 October,” Chris ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Guaranteed MIQ spots for health workers
    The Government is changing the way managed isolation is co-ordinated for health workers, guaranteeing 300 spots a month for the health and disability sector. “Our world-class workforce is vital in rebuilding the health system and dealing with the COVID-19 pandemic,” Andrew Little said. “Whether it’s bringing doctors or nurses in ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Govt helps to protect New Zealanders digital identities
    Making it easier for New Zealanders to safely prove who they are digitally and control who has access to that information is one step closer to becoming law, Minister for Digital Economy and Communications, Dr David Clark said. The Digital Identity Services Trust Framework Bill passed its first reading today ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Red tape cut to boost housing supply
    New building intensification rules will mean up to three homes of up to three storeys can be built on most sites without the need for a resource consent New rules will result in at least 48,200 and as many as 105,500 new homes built in next 5-8 years Bringing forward ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Nationwide business partnership grows conservation jobs
    Further Government support for New Zealand’s longest-standing sustainable business organisation will open up opportunities for dozens of workers impacted by COVID-19 to jump start a nature-based career, Conservation Minister Kiri Allan says. Partnering to Plant Aotearoa, led by the Sustainable Business Network (SBN), is a collaboration with iwi, hapū and ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New Zealand increases climate aid contribution
    Government commits $1.3 billion over four years to support countries most vulnerable to the effects of climate change At least 50 percent of funding will go to the Pacific as it adapts to the impacts of climate change The increase means New Zealand now meets its fair share of global ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Super Māori turnout for Super Saturday
    Māori have put a superb effort into mobilising to get vaccinated over Super Saturday, with thousands rolling up their sleeves to protect themselves, their whānau and communities from COVID-19, Associate Health Minister Peeni Henare says. “It was absolutely outstanding that 21,702 Māori got vaccinated on this one day alone with 10,825 ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Language assists Tagata Niue to thrive
    Despite the uncertain times we face with the challenges of COVID-19, our cultural knowledge, values and language remain constant, helping us progress towards goals in life, said  the Minister for Pacific Peoples Aupito William Sio. This year, the Niuean community in New Zealand decided on the theme, “Kia tupuolaola e ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New Zealand Ambassador to France announced
    Foreign Affairs Minister Nanaia Mahuta today announced the appointment of Caroline Bilkey as New Zealand’s next Ambassador to France and the OECD. “Aotearoa New Zealand and France have a shared history, and enjoy a strong, collaborative partnership. This includes a strong trade and economic relationship, a shared commitment to support ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Govt welcomes nurses’ pay settlement
    The Government is welcoming news that a new employment agreement for nurses working in public hospitals has been settled. “I am very pleased that the hard work of the Nurses Organisation and District Health Boards has led to a settlement that both can support,” Health Minister Andrew Little said today. ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Judge of the High Court appointed
    Māori Land Court Judge Layne Harvey has been appointed a Judge of the High Court, Attorney‑General David Parker announced today. Justice Harvey graduated with an LLB from the University of Auckland in 1992 and commenced employment as a law clerk with Simpson Grierson in Auckland that same year. In 1997 ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Kiwis to have their say on plan to reduce waste
    New Zealanders are invited to have their say on proposals for a new waste strategy and options for new waste legislation. “Reducing waste is one of the issues all New Zealanders – especially younger Kiwis - care deeply about,” Environment Minister David Parker said today “New Zealand is one of ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Next steps in action plan for indigenous rights kicks off
    Minister for Māori Development Willie Jackson has today meet with more than 30 national Māori organisations in an online hui, kicking off the process to develop a plan for New Zealand to implement the United Nations Declaration on the Rights of Indigenous Peoples (the Declaration). The previous National Government signed ...
    BeehiveBy beehive.govt.nz
    2 weeks ago