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Recently, the US Department of Justice announced that five major banks – Barclays, Royal Bank of Scotland, JPMorgan Chase, UBS and Citigroup – will be fined approximately $5.7 billion after pleading guilty to crimes involving the manipulation of global currencies and interest rates.

The DoJ noted that four of the banks – Citigroup, JPMorgan Chase, Barclays and the Royal Bank of Scotland – have been forced to plead guilty to antitrust violations in the foreign exchange market, after they allegedly worked together to enhance their profits by manipulating the $5-trillion-a-day foreign exchange market to $10 billion.

At the press conference the US Attorney General Loretta Lynch said that starting as early as 2007, currency traders at several multinational banks formed a group they dubbed “the cartel.”

Lynch said that almost every day for more than five years, traders in this “cartel” communicated through coded language in a private electronic chat room to manipulate the market’s exchange rate between euros and dollars.

“They acted as partners, rather than competitors, in an effort to push the exchange rate in directions favorable to their banks, but detrimental to many others,” Lynch said. “The prices the market sets for those currencies influence virtually every sector of every economy in the world. Their actions inflated the bank’s profits, while harming countless consumers, investors and institutions around the globe.”

The New York Times noted that when one member of the “cartel” would “build a huge position in a currency and then unload it at a crucial moment, hoping to move prices,” other traders would agree to “stay out of each other’s way.”

Business Insider reported that this is an unprecedented settlement for the parent companies of so many major banks “to plead guilty to criminal charges in a coordinated action,” and that JPMorgan Chase and Citigroup are the “first major U.S. banks to plead guilty to criminal charges in decades.”


It is the second reprimand derived from in less than six months. This time, the banks have also admitted guilt in the fraud, which can lead to criminal charges against its employees. Don’t hold your breath for those criminal charges, though. No single banker has gone to jail in recent history despite multiple and continuous violations of existing law.



The banks were accused of packaging low-quality debt products that were at the center of the recent financial crisis and later were cited in the investigation into the manipulation of interbank interest rates.

Of the total figure announced Wednesday, $ 2.5 billion will be paid as part of “criminal punishment”, an unprecedented amount that fits the scale of the currency “cartel” that operates in the financial market.

To this amount US authorities added another $1.8 billion imposed in parallel by the Federal Reserve. The agreement also involves other regulatory agencies.

It is estimated that the illicit profit from these transactions amounted to $ 10 billion, which makes it unclear why the banks are only being fined for half of those profits. A more realistic punishment would be to confiscate the totality of the profits on top of imposing other penalties.

Barclays is the one that suffers the greatest punishment, with a $ 2.4 billion fine, that includes $1.3 billion to close the investigation performed by the department of financial services in New York, the regulator of the futures market in the US and the authority financial behavior in the UK.

The penalties do not really mean that the banks have been caught with their hands in the cookie jar. Instead, it means that they are guilty of fraud, but that they were able to bribe public entities with payments that represent only a fraction of the profits amassed through the fraud in order for the investigation to be suspended.

Citigroup paid $1.2 billion while JP Morgan will pay $ 892 million. In the case of RBS the fine amounts to $ 669 million and UBS will pay $342 million. The US Central Bank has also fined Bank of America with $205 million.

A very important point to make is that the banks and the authorities have been negotiating this settlement for months after two years of investigations.

According to the investigation, operators from rival banks exchanged messages where they arranged strategies and shared confidential information on the movements of their customers, which they later used to agree strategies and limit losses.

The currency exchange market moves $5.3 billion a day, which is about the same number imposed in fines to the five banks accused of fraud.

The final amount of the fine is likely to be announced on Wednesday, as indicated by several sources, based on the agreement reached by each bank.

The head of the U.S. Justice Department, Loretta Lynch, insisted that this “severe” reprimand should be a “reminder” to any entity operating in Wall Street that “use the financial system in their favor” and “inflate” the benefits of companies while taking advantage of customers and consumers in general.


Source:

http://www.thesleuthjournal.com/banks-buy-their-way-out-of-currency-manipulation-scandal/

Post a Comment

  1. banks just raise our rates no sweat off their backs

    ReplyDelete
  2. What no Criminal charges for these criminals? Just a slap on the wrist and they go about their criminal ways? Sounds about right! Criminals (Our Government) protecting
    other criminals!!!

    ReplyDelete
    Replies
    1. Righ to. SOMEBODY Nees to g spend some time with Bubba Greenteeth and the boys, writing checks is nothing for those guys.

      For folks like us, a billion dollars seems a lot of money. They're paying a $2,5BN fine, and their handle was $10 Trillion a DAY? That's one quarter of one percent of ONE DAY'S worth of their graft. Not NEARLY enough money for the damage they do a on a daily basis.

      Lock them bitches up!

      Delete
  3. Someone should bust up all involved, liquidate all assets, jail those involved. Then reward those banks operating within the law with the opportunity to fill the void in the market and improve customer interests. No bailouts for these gluttonous pigs.

    ReplyDelete
  4. Does the law not say "You ought to know with whom you deal."?

    I think we all need to look at what's going on and stop blaming "them" when it is US.

    You don't deal with felons who are convicts...but you deal with banks of the same level.

    And somehow it's THEIR fault?

    hmmm Owe no man nothing but to love one another...

    ReplyDelete
  5. Banks get fined and the public eventually pays. Jail these criminals.

    ReplyDelete
  6. It's not our government anymore. It's an offshore corporation posing as a government. All the offices for the republic are empty in this country. It's time to hold real elections and reinstate the real government and currency.

    ReplyDelete
  7. Everything the Rothschilds do is fraud. Everything.

    ReplyDelete
  8. I had my house stolen from me WA Mutual. Do you know a lawyer or law firm that will help reimburse me???

    ReplyDelete
    Replies
    1. From my research you would need to file for recoupment , but you would need to do it in a court of equity.
      To take a case in a statutory court you are only fighting over paper ( form ) as to take a case in equity you are fighting over substance ( real property ) equity does what should have been done in the first place and takes precedence over statute and common law where there is a conflict.
      There is also precedent for a Tort case against your conveyance lawyer for a conflict of interest and failure to make you aware of same, there is also a 14 day cool off period if you were not made aware of that.
      A MORTGAGE is a scam .. any offer or application forms you signed are sold and the proceeds are you property but they pretend to have loaned you MONEY which is impossible as they are NOT permitted to loan depositors money but the fact is under they accounting system your mortgage is entered as a deposit and then transferred to the debit side of the books..... so Failure to perform on the alleged contract is your claim as there was NO ''consideration'' offered by them..( they risk nothing in the deal).
      next : The entity foreclosing on your property must have standing to do so..( the actual holder of the note ) if you ask to see the original they can't show it as it has been securitized and shredded.. you can res-cind the original contract as you are also entitled to the return of your security on settlement... but if it is sold/ shredded they cannot return the original can they ?? nope.
      a claim for full recoupment will see you ( depending on the judge ) but in equity they must do what is right, will see you getting compensation for ALL the documents they sold including the value of your mortgage.
      Then there is the case for punitive damages and just compensation for distress and injury.
      once you did not hand over the keys you are in a good position.. as they need all actions to be ''of your free will'' / consent.

      Delete
  9. Better showcase this in philly at the DNC or let Hillary steal it away when we could have gotten off our asses and show the fuck up... Bernie convention is our only chance in the near future

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  10. Not a penny to those harmed in their schemes...
    The whole system is illegetament tear their house of cards down

    ReplyDelete
  11. Don't stand around gawking and pointing fingers, don't SAY what needs to be done, DO what needs to be done.

    The many outnumber the few.

    ReplyDelete
  12. If u want to hurt them; take ur deposits out and go to bit coin or bit gold. Politics won't save u from this. Pulling deposits out on mass will

    ReplyDelete
  13. Thank God for Cryptocurrency and Blockchain Technology

    ReplyDelete
    Replies
    1. What happens to your precious digital currency when the computers and servers "go down"? If there were no electricity, how would your e money help you get food???

      Delete
  14. https://www.facebook.com/groups/1422123961334672/1755873441293054/?notif_t=group_activity&notif_id=1464027659967197

    ReplyDelete

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