Trump Waives Punishment for Convicted Mega Banks

The administration of U.S. President Donald Trump has waived part of the fines levied against five megabanks whose affiliates were involved in manipulating the global interest rate and other fraudulent activities.

Among the institutions are Deutsche Bank, which holds about US$130 million of the president's debt.

The four other banks receiving the waivers — Citigroup, JPMorgan, Barclays and UBS — received a temporary waiver by the administration of former President Barack Obama in late 2016 for a period of one year. Now, the Trump administration has offered five-year waivers to Citigroup, JPMorgan and Barclays and three-year waivers to UBS and Deutsche respectively.

The waivers were quietly announced online over the federal register during the Christmas holiday week. Per the laws which protect retirement savings, financial firms with affiliates convicted of violating securities statutes are barred from the lucrative business of managing those savings. However, a special exemption from the U.S. Department of Labor allows these firms to keep their status as "qualified professional asset managers."

Source

For anyone that was still holding out hope that Trump wasn't in the pocket of Wall Street prepare to be disappointed. So these fines go back to around 2012 and stem from the LIBOR scandal. The LIBOR scandal occurred in 2008 and revolved around banks manipulating interest rates in order to maximize profit. In the end hefty fines were levied against five megabanks, Citigroup, JP Morgan, Barclays, UBS, and Deutsche Bank.

Fast forward to 2016 and its time for the fines to come due. Obama grants the five banks a one year waiver. Once could argue he did it because he was in the pocket of Wall Street, or that he didn't want any economic ramifications to affect the election, or he simply wanted to foist the problem on to the next guy. Maybe a little of all three. Regardless, the fines now weren't due until late 2017.

Fast forward once again to the week of Christmas 2017. The White House quietly announces that the waivers have been extended another three to five years (depending on the bank.) Now, coincidentally that means the first banks won't have to pay their fines until just a few weeks after the election.

Which makes this an even more sticky situation for Trump is that, as mentioned above, one of the banks involved is Deutsche Bank. This is the same bank that has loaned Trump over a billion dollars over the years and he still owes over $100 million. This is the same bank that Ivanka has received money from. This is the same bank that Jared Kushner received over $200 million from one month before the election. And this is the same bank that about a year ago was busted laundering money for Russia.

Even if we disregard the connections one of the banks has to Trump this still doesn't look like a good move on his part. Obviously why the move was made when no one was paying attention. But here we have the law and order President that was going to drain the swamp going easy on the banks that crashed the economy in 2008 and then tried to profit off of the crash by manipulating interest rates. Not only is he going easy on them he's going even easier than Obama.

I'll certainly be interested what some of the more vocal Trump supporters on here have to say about this move.

a reply to: Xcalibur254

Well. At least he's got major interests in it opposed to just being their whipping boy.



S+F

a reply to: Xcalibur254

I will await more info on this.

Well hard to know exactly whats up and why without knowing the circumstances behind the move. On its face it doesn't look like something I agree with but I hardly know enough to know if it wasn't a necessary evil that without allowing the delays would cause further harm to the economy.

I see how you play up the criminal Russia trump angle and downplay the obama angle though which makes me not really value your opinion as very objective. That doesn't do a lot for your case in my eyes and I would bet will tend to draw the type of posts that won't be constructive if you are trying to actually figure out what's going on though.

Unless it means some real harsh implications to our economy that will hurt us more than punish the banks I say let them deal with it and give no quarter, however if the choice is a rather large hit to the economy and hurting Americans more than it would punish the banks I say its the right choice. I dont like it but if that were the case I would probably do what had to be done to cause the citizens the least harm.

The administration of U.S. President Donald Trump has waived part of the fines levied against five megabanks whose affiliates were involved in manipulating the global interest rate and other fraudulent activities.

There is only one megabank that controls interest rates.

That's the federal reserve.

a reply to: RickyD

Had I been tuned in in 2012 I would have skewered Obama for it. These bastard banks made a killing, people killed themselves for it. Bush+Congress then the next day Obama+Congress rewarded them with more killing. Never mind the roles these banks play in subverting our nation as a norm. They've made more killing since. They have the damn money.

Trump shouldnt be let off any different.

Its up to us to keep the the tip of the pyramid honest, especially when its our own people / party / etc. Expecting them to care what their opposition says is why everything stay the same. They care -100% what their opposition think, but they might care 10% what their supporters think.

a reply to: IgnoranceIsntBlisss

I fully agree but who knows what they may be saying or threatening behind closed doors. They kind of hold us hostage until we find a way to circumvent the massive damage they can cause if they so choose. The hit to our economy they could levy would ruin a whole lot of peoples lives...if they even lived through it.

I hate the banksters about as much as I hate the politicians who allow this to be the situation we are stuck in. Never trust either...no matter what side they say they're on. They are all only out for themselves!

a reply to: RickyD

I'm not pushing any narrative. I personally don't think the Russia investigation is going to touch Trump but I am interested to see what it shakes loose.

That said, you have to admit it's pretty bad optics for Trump to be waiving the punishment for a bank that has not only given his family close to $2 billion in the past but also has ties to Russia while he is under investigation for colluding with Russia.

a reply to: neo96

LIBOR is the benchmark for short term interest rates around the world. Pretty much all other banks base their rates around LIBOR.

originally posted by: IgnoranceIsntBlisss
a reply to: Xcalibur254

Well. At least he's got major interests in it opposed to just being their whipping boy.

S+F

Do you not know the difference between "interests in" and "indebted "?

You sir are living in bliss!!

😂😂😂😂


MTUBY

a reply to: Xcalibur254

This is extremely disheartening to hear...

The "Too Big To Fail" banks deserve harsher punishments and should be held accountable for their economic crimes... they ruin lives and communities with impunity, all while exploiting the masses. What a crock of s***!

a reply to: Wide-Eyes

I don't know what more info you need. Here is the posting on the federal register. As far as I can tell that official document is the only reference the government has made in reference to exemptions. That lack of info and the fact that it was released over a holiday seems to speak volumes.

I find it amazing that Obama still gets # for going easy on the banks in the wake of the Great Recession even though that helped stabilize the economy. Trump on the other hand goes easy on the banks during a booming economy (according to him and his supporters) and all of a sudden we need more info, or maybe this is better for the economy, or a myriad of other excuses.

One would think that with such a good economy now would be the time to punish these banks since the economy can handle a little extra strain. Who knows what it will look like in 3 to 5 years time. And once again isn't it just a little coincidental that these fines won't be due until after the election? He knows that his base won't agree with this move. That's why there's been absolutely zero mention of it outside the federal register and why it was released when it was. And that's why he's kicked the can down the road to a point where he may not be President anymore and it may be left up to someone else to deal with.

Trump is just another establishment puppet in the disguise of being anti-establishment. If the media didn't attack Trump so much then Trump wouldn't have anything under his belt tying him to being "anti-establishment" at all. It's the media alone who painted him as anti-establishment and that was their goal all along, make him look like an outsider so that he'd gain so much support.

Now that he's in office he hires establishment goons left and right and makes decisions like this one but people keep on supporting him. Why? Because the establishment media seems to have a hard on for attacking him constantly, the media is what keeps the facade up for Trump, along with Trump attacking the media constantly as well. Trump is the most establishment president I've ever seen, he shows all the signs of someone who has been part of the inner circle for a long time, people ignore those signs because "duh liberal media"!

Trump is a disaster as president so far.

originally posted by: FamCore
a reply to: Xcalibur254

This is extremely disheartening to hear...

The "Too Big To Fail" banks deserve harsher punishments and should be held accountable for their economic crimes... they ruin lives and communities with impunity, all while exploiting the masses. What a crock of s***!

I read through as much of the actual document from the Fed as I could.

This isn't releasing the banks accountability of anything from what I can tell. It is letting them keep a specific designation which continues to allow them to "pay back" those harmed by their initial actions.

The doc is really long but it makes it very clear that this action does not release these banks from any prior obligations.

Federal Register

a reply to: Vasa Croe

It does however give them another three to five years before they have to face their punishment. And who knows what happens then. Maybe it will just keep getting kicked down the road until no one cares anymore and they are absolved of their crime.

Damn it.

originally posted by: RickyD
a reply to: IgnoranceIsntBlisss

I fully agree but who knows what they may be saying or threatening behind closed doors. They kind of hold us hostage until we find a way to circumvent the massive damage they can cause if they so choose. The hit to our economy they could levy would ruin a whole lot of peoples lives...if they even lived through it.

Then people should whistleblow.

"Anti-establishment."

a reply to: Xcalibur254

That said, you have to admit it's pretty bad optics for Trump to be waiving the punishment for a bank that has not only given his family close to $2 billion in the past but also has ties to Russia while he is under investigation for colluding with Russia.

That & he currently still owes $130-300,000,000.00 to.

Gee why does a billionaire owe the banks money?

K~

originally posted by: Xcalibur254
a reply to: Wide-Eyes

I don't know what more info you need. Here is the posting on the federal register. As far as I can tell that official document is the only reference the government has made in reference to exemptions. That lack of info and the fact that it was released over a holiday seems to speak volumes.

I find it amazing that Obama still gets # for going easy on the banks in the wake of the Great Recession even though that helped stabilize the economy. Trump on the other hand goes easy on the banks during a booming economy (according to him and his supporters) and all of a sudden we need more info, or maybe this is better for the economy, or a myriad of other excuses.

One would think that with such a good economy now would be the time to punish these banks since the economy can handle a little extra strain. Who knows what it will look like in 3 to 5 years time. And once again isn't it just a little coincidental that these fines won't be due until after the election? He knows that his base won't agree with this move. That's why there's been absolutely zero mention of it outside the federal register and why it was released when it was. And that's why he's kicked the can down the road to a point where he may not be President anymore and it may be left up to someone else to deal with.

That doesn't make sense though. Surely Trump wants to leave a decent legacy?

Overhanging bank debts don't look very good in the history books.

Do you really think Trump is that shallow?