Wednesday, February 29, 2012
EU losses to Fraud
This buried headline in today's Vancouver Province could well be the most important story of the year. The European Union loses some $800 million to suspected fraud every year and it will consider setting up an office to combat it, a senior official said Tuesday.
This is relevant because that is a huge drain on the system. It is also relevant because the Greek financial crisis was the result of investment fraud. That massive fraud was hidden by Goldman Sachs who ripped off the EU of that massive bailout.
Allegations against Goldman Sachs highlight the pressing need to break up big banks and introduce strict financial regulation. Deregulation opens the flood gates wide open to investment fraud.