interestrateripoff Posted January 19, 2011 Share Posted January 19, 2011 http://www.theaustralian.com.au/business/chinese-bank-scams-vindicate-local-claims/story-e6frg8zx-1225989865717 They appear similar to a rort that undermined an Australian company's attempts to set up an extensive clean energy business there.Until now the company, wind energy firm Energreen, has found it difficult to convince its Australian partners, regulatory agencies, diplomatic authorities and the Chinese police that it was the victim of criminal duplicity. But now, three years later, it has become clearer that the scam that entrapped Energreen was just the tip of an iceberg of phony Chinese funding arrangements worth billions of dollars. Energreen part-owner Alan Keller, a building engineer based in the NSW Hunter Valley, told The Australian last year that the company had contracts to provide expertise and management on Chinese projects worth about $2 billion. The company is embroiled in a complex legal case over the issue, with veteran barrister Tom Hughes now leading the Bank of China's defence against Energreen's claim over a $US50 million ($50.6m) promissory note. Today, Qilu Bank is being investigated over a scandal allegedly involving $227m of forged commercial bank bills, used to provide short-term loans to business, and other forged commercial paper. The lender, which is 20 per cent owned by Australia's Commonwealth Bank, is based in Jinan, the capital of Shandong province, in northeast China. Other banks in Shandong, including Huaxia and Citic, are also being investigated, with charges likely to follow, according to Beijing News. China Business News said auditor PwC found irregularities in Qilu Bank's 2009 financial report, including abnormal credit for some lenders and illegal deposit pledges. Fantastic news for the global banking system, the whole edifice is rotten to the core, if this is true I think it's fair to assume this is common practice across the whole of China. The parasitical bankers are bleeding everyone dry. Banking is fraud, I believe someone once said. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted January 19, 2011 Author Share Posted January 19, 2011 http://market-ticker.org/akcs-www?post=177673 Oh God, please no.....Forged commercial paper? FORGED? This is a joke, right? Who forges commercial paper? Why someone who wants to pledge it in a repo or other operation, of course. Otherwise there's no point - if you claim to have it and really didn't lend it, it's a nothing, so why would you do it - except to deceive someone else up the line? Yeah, $227 million isn't much in the grand scheme of things. But if in point of fact China now has a bunch of banks that are stuffed full of forged paper at this level, then who knows what other fun and games are going on behind the scenes that we're not aware of. There's a terminal point in all bubbles, as we saw in the Housing Market, where people start cheating outright - not because they really want to, but because it's the only way you can keep the Ponzi-like expansion of compounding going. You run out of suckers when you can't manage to entice anyone else to be stupid, so you do the only thing that's left - you invent imaginary suckers. This is the same terminal phase we saw with OptionArmZeroDownNinja loans made to straw buyers, and it's the same phase we saw with Internet IPOs that had the word "Internet" on the face of the S1 and thus were worth an instant $300 a share the day of the offering - and $0.00 a year later. Anyone who is still believing in the "Chinese Miracle" had better pay attention to this story - and do their diligence on whether it's a "one-off" or is endemic of systemic problems that are starting to bubble to the surface. If the latter - and I strongly suspect it is - we're about to hear another big "pop" - this time in the East. Dennigers take on this. Quote Link to comment Share on other sites More sharing options...
ken_ichikawa Posted January 19, 2011 Share Posted January 19, 2011 But will china give them more money to gamble with like in the western world? Or will they put them into death camps and work them to death... My bet is with the latter.... China's wealthiest man in 2010 was put in a death camp for corruption, the odds of his survival are extremely low. Even a football referee was threatened with a sentence of torture then death for fixing a football match. Yes you read that torture THEN death. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted January 19, 2011 Author Share Posted January 19, 2011 But will china give them more money to gamble with like in the western world? Or will they put them into death camps and work them to death... My bet is with the latter.... China's wealthiest man in 2010 was put in a death camp for corruption, the odds of his survival are extremely low. Even a football referee was threatened with a sentence of torture then death for fixing a football match. Yes you read that torture THEN death. “Some people think football is a matter of life and death. I assure you, it's much more serious than that.” Bill Shankly Clearly the Chinese are fans of Bill Shankly, they understand the importance of the game..... Was the torture to get a confession before killing him? Quote Link to comment Share on other sites More sharing options...
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