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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsBig Banks Fined Mega-Billions; CEOs Remain Untouched, Above the Law
http://www.nationofchange.org/big-banks-fined-mega-billions-ceos-remain-untouched-above-law-1410103896Get arrested for robbing a bank or shoplifting and you will go to prison. Get caught selling cocaine or steal a car and you will do jail time. But if you are a CEO of one of the biggest banks in America and that bank is fined mega-billions for fraudulent practices you need not worry because the U.S. Justice Department will give you a free pass; you are, in effect, above the law.
That is beyond comprehension, a clear travesty of justice, but it has become commonplace in America. Just look at the following list of U.S. and some foreign banks that have been fined billions of dollars. Not one of their top executives has been prosecuted in connection with the violations of the law that led to these fines:
$25 billion - Wells Fargo, J.P. Morgan Chase, Citigroup, Bank of America, BAC, and Ally Financial - 2012
$13 billion - J.P. Morgan Chase & Co. 2013:
$9.3 billion - Bank of America, Wells Fargo, J.P. Morgan and 10 others 2013:
$8.5 billion - Bank of America June 2011:
$2.6 billion - Credit Suisse AG May 2014:
1.9 billion - HSBC Holdings, HSBA - 2012
$1.5 billion UBS, AGUBSN - 2012
$1.4 billion - 10 Wall Street firms including Goldman Sachs, Morgan Stanley, and J.P. Morgan 2003
What fraudulent practices brought on these massive fines? They involved mortgage foreclosure processing abuses, claims over residential-backed mortgage securities, deceptive mortgage loan application processes, associated tax evasion, manipulated interbank lending rates, and conflicts of interest between research and investment banking sectors.
MannyGoldstein
(34,589 posts)Jamie Dimon was certainly not "untouched". He got an enormous raise for negotiating such a great deal.
Also, your numbers are only the announced values of the fines. The actual fines are far smaller because they get credit for things they already did anyway, accounting tricks, etc.
xchrom
(108,903 posts)liberal_at_heart
(12,081 posts)safeinOhio
(32,688 posts)for CEOs
RKP5637
(67,111 posts)and ethics. There is a very thin line between a successful businessman and a successful criminal for many, not all, but many. I was once told this by an extremely wealthy individual, like a 1/2 percenter friend who started with nothing. More and more I find that to be quite true. One can pull some real shenanigans in business and get an OK. ... but do that in other ways and one lands in jail.
dixiegrrrrl
(60,010 posts)The State needs the money, these wars are expensive.
Fat cats got the money, so they pay.
Poor folks are worth money also, in the corporate court and prison system, as Ferguson shows.
RKP5637
(67,111 posts)Initech
(100,081 posts)Octafish
(55,745 posts)Especially when ya own the cops and judges.
http://www.blackagendareport.com/content/barack-obamas-2nd-term-it-bill-clintons-3rd-or-it-ronald-reagans-9th
Octafish
(55,745 posts)Charles Ferguson
Huffington Post| Jul 16, 2012 08:23 AM EDT
Consider just (July's) news in financial services.
First, Barclay's has been manipulating the Libor, the main interest rate upon which most other interest rates and financial transactions are based, since 2005. Moreover, Barclay's traders were colluding with traders in many other banks to assist them in manipulating the Libor too, so that they could all profit from their bets on it.
Second, JP Morgan Chase is having a really great month. Recent reports describe how it is resisting Federal subpoenas related to price-fixing in U.S. electricity markets. It is also accused (by former employees among others) of deliberately inflating the performance of its investment funds to obtain business. And finally, JP Morgan's failed "London whale" trade, which has now cost over $5 billion, is being investigated to determine whether the loss was initially concealed from regulators and the public.
Third, HSBC is paying a fine because it allowed hundreds of millions, perhaps billions, of dollars of money laundering by rogue states and sanctioned firms, including some related to terrorist activities and Iran's nuclear efforts. But HSBC is only one of at least 12 banks now known to have tolerated, and in some cases aggressively courted, money laundering by rogue states, terrorist organizations, corrupt dictators, and major drug cartels over the last decade. Others include Barclay's, Lloyds, Credit Suisse, and Wachovia (now part of Wells Fargo). Several of the banks created special handbooks on how to evade surveillance, created special business units to handle money laundering, and actively suppressed whistleblowers who warned of drug cartel activities.
SNIP...
Just another month in financial services. Is it unusual? No, it's not. If we go back just a little further, we have UBS, HSBC, Julius Baer, and other banks actively marketing tax evasion services to wealthy U.S. and European citizens. We have senior executives of several banks (including JP Morgan Chase and UBS) strongly suspecting that Bernard Madoff was running a Ponzi scheme, but deciding to make money from him rather than turn him in. And then, of course, we have the financial crisis and everything that led to it. As I show in great detail in my book Predator Nation, we now possess overwhelming evidence of massive securities fraud, accounting fraud, perjury, and criminal Sarbanes-Oxley violations by mortgage lenders, investment banks, and credit insurers (including senior executives of Countrywide, Citigroup, Morgan Stanley, Goldman Sachs, Bear Stearns, AIG, and Lehman Brothers) during the housing bubble that caused the financial crisis. If we go back to the late 1990s, we have the massively fraudulent hyping of Internet stocks, and several banks (including Merrill Lynch and Citigroup) actively aiding Enron in committing its frauds.
CONTINUED...
http://www.huffingtonpost.com/mobileweb/charles-ferguson/bank-crimes_b_1675714.html