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Five of the world’s largest banks will plead guilty to felony charges and pay fines totaling nearly $5.8 billion following a multi-year investigation into allegations the banks banded together to manipulate global financial markets, the U.S. Justice Department announced Wednesday.
Four of the banks – Citicorp (NYSE: C), JPMorgan Chase (NYSE: JPM), Barclays PLC (NYSE: BCS) and The Royal Bank of Scotland (NYSE: RBS) -- will plead guilty to conspiring to manipulate the price of U.S. dollars and euros in foreign currency markets and the banks will pay fines totaling more than $2.5 billion.
Traders allegedly rigged by the markets by manipulating two major daily rate “fixes,” the 1:15 p.m. European Central Bank fix and the 4:00 p.m. World Markets/Reuters fix, according to prosecutors. Third parties collect trading data at these times to calculate and publish a daily “fix rate,” which in turn is used to price orders for many large customers.
But Chicago securities attorney Andrew Stoltmann said the punishment has more bark than bite because the banks got regulators to eliminate much of the sting from the penalty during negotiations.
“In exchange for pleading guilty and paying these hefty fines, the banks demanded that regulators not ban them from certain business practices,” said Stoltmann.
“These accommodations render the plea deals effectively useless. The pain of an indictment comes from banks not being able to, as a felon, engage in certain lucrative business practices. By getting the SEC and Labor department to ok the continuation of these business practices, the pleas are not very meaningful,” he added
originally posted by: Britguy
You'd think that with so many felonies behind them, they'd even have their banking licenses withdrawn...
The banks agreed to what the Justice Department called three years of “corporate probation” that would include federal court supervision and regular reporting to authorities to determining that the firms had ended “all criminal activity.”
originally posted by: AugustusMasonicus
a reply to: DAVID64
Good thing we have Dodd-Frank and Too Big to Exist, erm, I mean, Fail.
Instead of breaking these mega-banks down they are only going to continue to consume smaller banks and repeat the failed actions of the past.
originally posted by: NavyDoc
I wonder when they are going to go after George Soros for doing the same thing.
originally posted by: GAOTU789
I don't understand, well I do actually but it still doesn't make sense in my head, why none of these POS go to jail. They didn't in 08/09 and they won't for this. They might put up one sacrificial lamb but that will be it and they only get the lightest sentences possible.
If anyone ever thinks that there isn't two justice systems in this world, just point them to this or the fact that no one went to jail for collapsing the worlds economy. In fact, they got handed a tonne of tax payer money because they were all "too big to fail".