$150 billion in bank fines and penalties


7 years on from crisis, $150 billion in bank fines and penalties
http://www.cnbc.com/2015/04/30/7-years-on-from-crisis-150-billion-in-bank-fines-and-penalties.html
John W. Schoen | @johnwschoen
Thursday, 30 Apr 2015 | 2:32 PM ET

(Scott Mlyn | CNBC )

Bank of America
Scott Mlyn | CNBC

More than seven years after the global financial collapse, regulators and investors are still working through an epic pile of lawsuits and other civil actions, collecting settlements, fines and other penalties for a long list of wrongdoing.

The latest settlement involved Bank of America, which agreed this week to pay $180 million to settle a lawsuit that claimed the Charlotte, North Carolina-based bank and others manipulate foreign-exchange rates, according to The Wall Street Journal. JPMorgan Chase has already settled with the same investor group, while others, including Citigroup, are expected to settle soon, the The Journal notes.

The 2013 lawsuit claimed bank traders shared customer information to profit at their clients’ expense, according to the report.

The settlement follows a seven-year effort by federal and state regulators that included dozens of actions related to a broad range of misconduct and fraud, including bilking mortgage investors, laundering money and evading taxes. So far, banks and other institutions have paid more than $150 billion in fines, settlements and other penalties, according to a tally by the Financial Times.

That compares with roughly $700 billion in profits generated by U.S. banks between 2007 and 2014, according to Federal Deposit Insurance Corp. data.

Financial penalties
Banks and other financial firms have paid more than $150 billion in fines, settlements and restitution to homeowners and investors since the finanical crisis. Click on a bubble for details, then hover over bars for payment descriptions. (SOURCE: Financial Times.)

Bank of America: $57.8 Billion
JPMorgan Chase: $31.3 Billion
Citigroup $12.8 Billion
Wells Fargo $ 9.7 Billion
PNB Paribas $ 8.9 Billion
HSBC $ 3.5 Billion
UBS $ 3.5 Billion
Sun Trust $ 2.9 Billion
Also listed are Credit Suisse, Deutsche Bank, but for which no amount of money is shown:

Bank of America
Scott Mlyn | CNBC

More than seven years after the global financial collapse, regulators and investors are still working through an epic pile of lawsuits and other civil actions, collecting settlements, fines and other penalties for a long list of wrongdoing.

The latest settlement involved Bank of America, which agreed this week to pay $180 million to settle a lawsuit that claimed the Charlotte, North Carolina-based bank and others manipulate foreign-exchange rates, according to The Wall Street Journal. JPMorgan Chase has already settled with the same investor group, while others, including Citigroup, are expected to settle soon, the The Journal notes.

The 2013 lawsuit claimed bank traders shared customer information to profit at their clients’ expense, according to the report.

The settlement follows a seven-year effort by federal and state regulators that included dozens of actions related to a broad range of misconduct and fraud, including bilking mortgage investors, laundering money and evading taxes. So far, banks and other institutions have paid more than $150 billion in fines, settlements and other penalties, according to a tally by the Financial Times.

That compares with roughly $700 billion in profits generated by U.S. banks between 2007 and 2014, according to Federal Deposit Insurance Corp. data.

Some of those involved charges against individual bankers. About 70 CEOs, CFOs and other senior corporate officers had been charged by the Securities and Exchange Commission as of October, the latest data available. The SEC says it collected $3.6 billion in penalties and other payments related to the charges.

Bank of America
Scott Mlyn | CNBC

More than seven years after the global financial collapse, regulators and investors are still working through an epic pile of lawsuits and other civil actions, collecting settlements, fines and other penalties for a long list of wrongdoing.

The latest settlement involved Bank of America, which agreed this week to pay $180 million to settle a lawsuit that claimed the Charlotte, North Carolina-based bank and others manipulate foreign-exchange rates, according to The Wall Street Journal. JPMorgan Chase has already settled with the same investor group, while others, including Citigroup, are expected to settle soon, the The Journal notes.

The 2013 lawsuit claimed bank traders shared customer information to profit at their clients’ expense, according to the report.

The settlement follows a seven-year effort by federal and state regulators that included dozens of actions related to a broad range of misconduct and fraud, including bilking mortgage investors, laundering money and evading taxes. So far, banks and other institutions have paid more than $150 billion in fines, settlements and other penalties, according to a tally by the Financial Times.

That compares with roughly $700 billion in profits generated by U.S. banks between 2007 and 2014, according to Federal Deposit Insurance Corp. data.

Some of those involved charges against individual bankers. About 70 CEOs, CFOs and other senior corporate officers had been charged by the Securities and Exchange Commission as of October, the latest data available. The SEC says it collected $3.6 billion in penalties and other payments related to the charges.

The biggest payments have gone to the Justice Department, which has collected some $50 billion, according to the FT tally.

Among the banks paying the biggest amounts, Bank of America tops the list—with nearly $58 billion, followed by JPMorgan Chase ($31.3 billion), Citigroup ($12.8 billion) and Wells Fargo ($9.7 billion).

http://video.cnbc.com/gallery/?video=3000375715

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From Ring of Fire: Greece Goes To War With the World’s Most Corrupt Banks; Scams Will Be Revealed


greekfinmin11
Greece Goes To War With the World’s Most Corrupt Banks; Scams Will Be Revealed
— February 20, 2015
http://www.ringoffireradio.com/2015/02/greece-goes-to-war-with-the-worlds-most-corrupt-banks-scams-will-be-revealed/


Ever since the left-wing, anti-austerity Syriza party in Greece took control of the country, Greek leaders have been putting up a fight for its economy, reported Democracy Now. Greek financial leaders will continue trying to get their country out of the eurozone in order to keep their economy from completely bottoming-out.

Greece’s problems really didn’t go full tilt until Wall Street banks got involved. One of the main culprits is Goldman Sachs, which enabled Greece to hide their debts. The bank charged them $300 million for the operation, a veritable payday for the massive bank. This transaction goes all the way back to 2001, the year that Greece became part of Europe’s monetary union.

The New York Times reported in 2010 that “Wall Street tactics akin to the ones that fostered subprime mortgages in America have worsened the financial crisis shaking Greece.” Goldman Sachs, JPMorgan Chase, and many others contributed to the growing Greek debt crisis.

Their tactic? Take advantage of an entity while its down and use the desperation of another country to line Wall Street’s pockets. The banks took interest into a high risk client, and, driven by greed, they intensified an already existing problem. Did the banks care? No. They just cared about what’s profitable.

“Politicians want to pass the ball forward, and if a banker can show them a way to pass a problem to the future, they will fall for it,” said economist Gikas Hardouvelis.

The banks worsened the problem so much that the European Union called for an investigation into Goldman Sachs and the other banks involved.

“It appears that Goldman Sachs have colluded with past Greek governments to reduce the appearance of Greece’s debt for short-term gain, while in reality making it worse than ever,” said Arlene McCarthy, vice-president of the European parliament’s economic and monetary affairs committee. “These deals have increased costs for Greek taxpayers and left a mess behind for Greece’s citizens and the eurozone.”

Today, this problem has compounded over the years and with the threat of austerity, Greece has been backed into a corner.

When Greek financial minister, Yaris Varoufakis, introduced a compromise proposal to German finance minister, Wolfgang Schauble, the proposal was swiftly rejected. A union of 19 eurozone finance ministers will meet again today in Brussels in an attempt “to resolve a standoff that has sent jitters across the continent at the prospect of a messy Greek exit from the single currency.”

Greek’s €240 billion bailout expires in exactly one week. However, austerity measures attached to the bailout are making it difficult for the country to break out and abandon the euro. Because Greece is “locked out” of international lending markets, the country could go completely broke next month if no deal is reached, reported The Guardian.

“We are working so that Greece stays in the eurozone,” said Germany’s commissioner to the European Union, Guenther Oettinger. “On this basis I think an agreement will still be possible in the next eight days – if necessary via a further meeting of government leaders.”

Austerity measures and past deals with banks have Greece in the pressure cooker. If no deal is reached, Greece’s economy will tank, only accentuating the actions of Wall Street banks that sent the Greek economy from a stall into an outright tailspin.