Sunday, May 17, 2015

Five Major Banks to Plead Guilty to Rigging Currency Markets

By Andre Damon

Five major international banks are expected to plead guilty as soon as next week to criminal charges in the US related to their deliberate manipulation of global foreign exchange markets, which allowed them to rake in billions of dollars at the expense of retirees, university endowments and municipalities.  Citigroup, JPMorgan Chase, Royal Bank of Scotland Group, Barclays and UBS are expected to plead guilty to felony fraud and antitrust charges. ……The effect of the guilty pleas will be essentially zero, beyond the immediate costs of the fines levied on the institutions. As the Times put it, “life will go on, probably without much of a hiccup.”……The investigation charges also had a criminal component…..Despite the unprecedented character of the pleas, the actual impact of the admissions of criminal wrongdoing by the banks is expected to be next to nothing….. for the biggest corporations, being convicted of a felony is increasingly becoming legally irrelevant…….. the fines levied by financial regulators remain a cost of doing business, and pale in comparison with the billions of dollars made by the major banks every year through criminal activities……In exchange for their services, top financial regulators are almost universally provided with high-paying positions in Wall Street after their stints with the government……To this day, not a single executive at any major bank has been criminally prosecuted for helping to cause the financial crisis, or any of the crimes that followed…..To Read More…..

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