It’s Nov. 2, 1993, and two employees of Bankers Trust Co. are discussing a leveraged derivative deal the bank had recently sold to Proctor & Gamble Co. “They would never know. They would never be able to know how much money was taken out of that,” says one employee, referring to the huge profits the bank stood to make on the transaction. “Never, no way, no way,” replies her colleague. “That’s the beauty of Bankers Trust.” The Bankers trust tapes 1993
To understand John Key’s over the top aggression towards the tape maker and the press who holds it you have to go back in John Key’s murky past. To the year 1995 to be precise. That was the year the bank John Key was working for collapsed and he had to find another job. Lucky for him another bank had a use for his salesman of crappy derivatives qualities and he went on to develop their department of debt but that event must have been traumatic for John Key as it could have meant the loss of his income and the status he craved through wealth! In Fact John Key describes his departure from Bankers trust bank as follows in the July2008 Eugene Bingham’s “Unauthorised biography”: And then all hell broke loose and I said,”Right I’m out of here”!
So what happened in the year 1995 that caused the Bank to collapse?
In short the bank collapsed because its clients lost all trust in the bank and pulled out their fortunes leaving the bank insolvent. But why did they losse all their confidence?
To find out about this you have to go back to 1993 as this was the year the corporate giant Proctor and Gamble started proceedings against Bankers Trust bank, the bank John Key worked for at the time.
Their reason for doing so was the fact that they had started loosing money on a package of derivatives they had been advised to buy by the Bankers trust bank. They alleged that the bank had sold them a product which was so complicated that they had no way to ascertain the validity of the product and that it was in fact fraudulent.
It wasn’t until 1995 that it became clear that the bank would not survive because 6,500 tape recordings were forced out in the open by Proctor & Gamble meaning the bank lost most of it’s customers. So you see for all intends and purposes John Key has lost a job once before due to leaked tapes exposing his bank as a thoroughly fraudulent and corrupt entity.
In fact the banks employees had a word for their scamming ways. That word was ROF which stood for Rip off Factor.