SCMP: Hundreds more arrested in China’s rural banking scandal

[casual]

it's a bank deposit how is it even comparable to speculative investment in NASDAQ.
As for the largess of the CCP and the CCP cares for people narrative you do know that bank deposits is guaranteed by the federal government. Stop with your whataboutism and explain how a criminal gang can take over a bank.

right... a deposit with a 13-18% annual return... if you believe this crap, I have some great investment funds for you lol

 

[dbc]

right... a deposit with a 13-18% annual return... if you believe this crap, I have some great investment funds for you lol

well greed makes people stupid but it doesn't explain how the CPC that is omnipresent and omniscient permitted such a bank to operate under criminals nor does it explain how the bank was able to offer a financial service not complaint with banking regulations.

 

[beijingwalker]

well greed makes people stupid but it doesn't explain how the CPC that is omnipresent and omniscient permitted such a bank to operate under criminals nor does it explain how the bank was able to offer a financial service not complaint with banking regulations.

China doesn't permit such operations, but economic crimes and scams happen in every country, you just can't clean them all, and small private banks go bankrupt also in every country, even big US banks went bankrupt because of shady dealings.

The 15 Biggest Bank Failures in US History

These banks had billions in assets, but they still went under.

www.gobankingrates.com

 

[dbc]

China doesn't permit such operations, but economic crimes and scams happen in every country, you just can't clean them all, and small private banks go bankrupt also in every country, even big US banks went bankrupt because of shady dealings.

The 15 Biggest Bank Failures in US History

These banks had billions in assets, but they still went under.

www.gobankingrates.com

but the US is not China. You repeatedly assert the CPC is hyper efficient and near perfect at governing the country. So either you and your cohorts embellish reality or this incident is an anomaly. So which is it? As an outsider we rely on Chinese members such as yourself to explain these events and hence the question. In the US you can't get most jobs with a criminal record. There is background check when you apply for a business license as well, if you are convicted of a serious crime you have no chance of having your license approved.

..and the US bank failures you listed failed because they made careless investments decisions and not due to criminal malpractice- big difference. If you put money in a bank without carefully assessing the financial risk of exposure and routinely monitoring the financial performance of your institution your likely to get hurt due to your own ignorance.

 

[dbc]

These are mostly private run unregulated banks offering higher interests. They're not affiliated with official government back institutions. Maybe don't be stupid before....nah too late for you. Crawl back to whatever retard bush you emerged from.

private unregulated bank these are registered businesses not back alley loan sharks or mama sang at a Chinatown brothel that keeps your money safe for a fee.

I guess you sure showed me who is boss. But I'm used to the Chinese hurling unprovoked insults as if they own the place. Sticks and stones...

 

[Hamartia Antidote]

even big US banks went bankrupt because of shady dealings.

But our deposits of up to $250,000 are insured by the federal government.

Nobody was protesting in the streets or being attacked by mysterious white shirts when US banks fail.

I'm sure you'd be the first to post it if it did.

 

[dbc]

Registered business does not mean regulated banks. There are thousands of these rural banks in China. Shit Americans couldn't even monitor their major banks during the 2008 financial crisis, and it has the most expansive regulatory system in the world.

Whoever conceived you should have swallowed to save the world of your stupidity. I'm sure being called a retard is a regular occurrence for you, though I'm not convinced about your whole "I'm used to it" claim for the butthurt negative rating. That's something little reddit bitches would do.

more insults more negative rating..I'm good with that trade.

not regulated you say? then why is an inspector belonging to the "regulatory" agency being investigated. Surely you didn't think through that lie, try harder.

China probes banking inspector in Henan province after fraud case, protests

China's banking regulator on Sunday said it is investigating an inspector at its bureau in Henan province, which has seen protests by depositors unable to retrieve funds following suspected fraud at a number of rural lenders.

www.reuters.com

 

[MH.Yang]

This is a fraud, involving 30 billion CNY, Chinese police have arrested more than 200 suspect.

The interest rate of the Bank of China is 1.5%, and this fraudulent bank actually uses up to 18% interest for deposit, so a group of greedy fools were deceived.

 

[MH.Yang]

well greed makes people stupid but it doesn't explain how the CPC that is omnipresent and omniscient permitted such a bank to operate under criminals nor does it explain how the bank was able to offer a financial service not complaint with banking regulations.

Chinese law allows enterprises and organizations with certain qualifications to set up private banks. However, China prohibits high interest rate deposits. If the interest rate of private banks exceeds 200% of the interest rate of the Bank of China (1.5%), they will be fined. Those who exceed 400% of the interest rate of the Bank of China are sentenced to imprisonment. This private bank apparently illegally solicited deposits at high interest rates, so many local officials were arrested. These officials may be suspected of harboring crimes and accepting bribes.

 

[dbc]

Chinese law allows enterprises and organizations with certain qualifications to set up private banks. However, China prohibits high interest rate deposits. If the interest rate of private banks exceeds 200% of the interest rate of the Bank of China (1.5%), they will be fined. Those who exceed 400% of the interest rate of the Bank of China are sentenced to imprisonment. This private bank apparently illegally solicited deposits at high interest rates, so many local officials were arrested. These officials may be suspected of harboring crimes and accepting bribes.

I understand that but then what I don't understand is how known criminals can take control of a financial institution. Surely, when an ownership change is registered with the authorities there is some due diligence performed by the concerned authorities.
These criminals may have bribed an official or two to circumvent the background check but even so the fraud would have been detected in a routine audit. I find it hard to believe that in an era of big data, ML and AI such anomalies can go undetected. Surely protestors showing up outside the bank in droves wasn't the first indication to the authorities that something wasn't right with the bank?

For crying out loud if one person in a billion posts something controversial or illegal on social media the post is deleted in hours if not minutes. So how did the authorities miss something so big?

 

[beijingwalker]

I understand that but then what I don't understand is how known criminals can take control of a financial institution. Surely, when an ownership change is registered with the authorities there is some due diligence performed by the concerned authorities.
These criminals may have bribed an official or two to circumvent the background check but even so the fraud would have been detected in a routine audit. I find it hard to believe that in an era of big data, ML and AI such anomalies can go undetected. Surely protestors showing up outside the bank in droves wasn't the first indication to the authorities that something wasn't right with the bank?

For crying out loud if one person in a billion posts something controversial or illegal on social media the post is deleted in hours if not minutes. So how did the authorities miss something so big?

You sound like Chinese banks are all controlled by scammers, this is ridiculous, how often this happens in China, once every several decades? and people get paid by the government and scammers get punished, so what's the fuss?

 

[MH.Yang]

I understand that but then what I don't understand is how known criminals can take control of a financial institution. Surely, when an ownership change is registered with the authorities there is some due diligence performed by the concerned authorities.
These criminals may have bribed an official or two to circumvent the background check but even so the fraud would have been detected in a routine audit. I find it hard to believe that in an era of big data, ML and AI such anomalies can go undetected. Surely protestors showing up outside the bank in droves wasn't the first indication to the authorities that something wasn't right with the bank?

For crying out loud if one person in a billion posts something controversial or illegal on social media the post is deleted in hours if not minutes. So how did the authorities miss something so big?

Because the qualification of the No. 1 criminal LV Yi is real, he really has enough capital to start a bank.

On January 31 this year, LV Yi's branch in the USA sent blessings to all Chinese Americans on the Disney screen in Times Square in New York. He also invited the Secretary General of the United Nations Antonio Guterres, the president of the 76th United Nations General Assembly Abdulla Shahid, the mayor of Denver, Michael Hancock, and others.

Do you understand now? LV Yi passed the examination of the banking regulatory authority with the real capital guarantee, and then bribed local officials to conceal his criminal behavior of soliciting deposits at high interest rates.


This is the first time that China's banking regulatory authorities and public security departments have encountered such fraud cases. I hope they can learn a lesson and quickly patch the bugs in the program.

 

[dbc]

Because the qualification of the No. 1 criminal LV Yi is real, he really has enough capital to start a bank.

So LV Yi wasn't a criminal when he took ownership of these banks?

You sound like Chinese banks are all controlled by scammers, this is ridiculous,

I did not say nor imply all Chinese banks are scams. I'm just trying to understand the sequence of events that led to this particular banking scam.

 

[MH.Yang]

So LV Yi wasn't a criminal when he took ownership of these banks?


I did not say nor imply all Chinese banks are scams. I'm just trying to understand the sequence of events that led to this particular banking scam.

His crime was to collect deposits at high interest rates, and he transferred most of the funds to Cyprus and the USA.

China and the USA have an agreement to deal with similar economic criminals, but China and Cyprus have no similar agreement. Therefore, it is likely to take a long time to recover the funds transferred to Cyprus.

In addition, when the Chinese police froze all accounts of these banks in the first half of this year, Lu Yi and others once hired more than 200 construction workers at a local construction site to March as depositors, blocked roads, and asked the police to unfreeze funds and accounts. This is also suspected of obstructing public service.

 

[dbc]

In addition, when the Chinese police froze all accounts of these banks in the first half of this year, Lu Yi

so the funds were frozen, is that why people weren't able to withdraw cash from the bank? News reports make it sound like the bank was operational until the protests began a month ago.