Effects Of Record Mafia Sweep On Consumers Finances
Saturday, January 22, 2011, 7:52 AM | Leave Comment
Media reported on Thursday that federal agents conducted their largest ever roundup of suspected mob members, charging 127 people in the Northeast with crimes ranging from execution-style slayings to illegal card games. It seems that banks, hedge funds, and private investors and the likes have learned a lot from the mob tactics of loan-sharking, racketeering, and just plainly bringing the debt-holders to their knees. When the wise guys do it, it’s illegal. When banks and other institutions do it, it’s quite legal. Both have made lots and lots of money from their operations.
There are definite effects of the charges made against them on the personal finances of innocent consumers. The slayings charges have no apparent effect but other charges that have something to do with money may have direct effect on our finances.
The charges made against mob members and some of the works attributed to banks, hedge funds, and private investors have so much in common that dollar-for-dollar, one can be replaced with the other without realizing the difference between the two.
These entities have begun pumping money into other people’s lawsuits in the hopes of sharing in the potential winnings. As the New York Times reported on Sunday, Jan 16, for the borrowers, particularly those injured and seeking settlement, this can be exceedingly risky. It’s quite legal and is done under the nose of Security and Exchange Commission (SEC) and other federal agencies. That’s the saddest part for consumers but the happiest for lending institutions.
Some of the terminology being used in the charges made against the mob members are as follows: [Time and again media have used the same terminology about tactics used by some of the lending institutions and debt collection agencies.]
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Loansharking
Wikipedia defines loansharking as “A loan shark is a person or body that offers unsecured loans at high interest rates to individuals, often enforcing repayment by blackmail or threats of violence.” Some lending institutions and debt collection agencies have done it for years legally.
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Extortion
Extortion is a criminal offense which occurs when a person or a lending institution unlawfully obtains either money, property or services from a person(s), entity, or institution, through coercion. Some lending institutions and debt collection agencies have done it for years legally.
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Racketeering
Racketeering is the act of operating an illegal business or scheme in order to make a profit, perpetrated by a structured group. Some lending institutions and debt collection agencies have done it for years legally
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Slaying
Slaying can be done in a variety of ways. One is the obvious meaning. The mob kills physically. The other is obvious as well. Some lending institutions and debt collection agencies kill consumers financially. Sometimes financial death is more painful.
In a Nutshell
All the charges made against the wise guys are obviously due to the illegality of the crimes. However, institutions have done similar things – like cooking financial books – legally and have gotten away with it. What about the so-called robo-signers? Shouldn’t they have been rounded up as well? Killing consumers with a slow and painful financial death.
Many experts have suggested stricter punishment for screwing the consumers. Watch the video.
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