Five Major Banks to Plead Guilty to Rigging Currency Markets

Published on Global (also on World Socialist Web Site WSWS), by Andre Damon, May 15, 2015.

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. They will pay fines totaling several billions of dollars, according to bank and regulatory officials who spoke anonymously with the New York Times, Bloomberg and Reuters.

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 guiding principle of the Obama administration, in the words of former Attorney General Eric Holder, is that the giant banks are “too big to jail.” As the Times article explained, prosecutors are “mindful that too harsh a penalty could imperil banks that are at the heart of the global economy.”

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.

Most notably, Ben Bernanke, the former Federal Reserve chairman who funneled trillions of dollars in government funds to Wall Street, announced last month that he has been hired by Chicago-based hedge fund Citadel LLC. This followed the announcement in November 2013 that former Treasury Secretary Timothy Geithner joined the hedge fund Warburg Pincus.

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.

(full text).

Related Links:

Foreign exchange market (Currency markets) on en.wikipedia is a global decentralized market for the trading of currencies. In terms of volume of trading, it is by far the largest market in the world.[1] The main participants in this market are the larger international banksFinancial centres around the world function as anchors of trading between a wide range of multiple types of buyers and sellers around the clock, with the exception of weekends. The foreign exchange market determines the relative values of different currencies …;

Theme of the Five Major Banks to Plead Guilty … also on:

Other Links:

Military solution not enough to defeat IS in Iraq – UN envoy, on Xinhuanet, May 15, 2015;

URGENT: Senate backtracks on TPP fasttrack – call Congress to oppose the Trans Pacific Partnership, on boingboing, by Cory Doctorow, May 15, 2015;

The Secret Corporate Takeover, on Project, by Joseph E. Stiglitz, May 15, 2015;

Economics and the value of art, on RWER Blog, by David Ruccio, May 15, 2015;

Hometown diplomacy highlights Modi’s Xi’an tour, on Xinhzuanet english, May 15, 2015;

Why Syriza Will Blink, on Project, by ANATOLE KALETSKY, May 14, 2015 (my comment: they waited a too much long time to act … if you want go the revolutionnary way, you cannot negociate, you have to make it when the rabbit is at your feet – and then go quickly – Heidi);
/Warum Syriza nachgeben wird, auf Project, von ANATOLE KALETSKY, Mai 14, 2015 - aus dem Englischen von Harald Eckhoff;

What does Russia mean to Egypt? on Al-Ahram weekly online, by Ahmed Eleiba, May 14, 2015: on the significance of President Abdel-Fattah Al-Sisi’s latest visit to Moscow;

The End of Journalism in Ukraine – A Feature Interview with Anatoly Sharij, on Global, by Michael Welch, Anatoly Shary, and Robert Parry, May 12, 2015;

Hegemony in the Making, Germany on the Way to Becoming a Political Giant, on The Bullet, Socialist Project’s E-Bulletin No. 1114, by Rainer Rilling, May 11, 2015 – translation by Eric Canepa;
Download: Pdf in german: Neue Macht, Neue Verantwortung, 49 Seiten; Pdf in english: New Power, New Responsibility, 49 pages;

Everything you always wanted to know about Bill C-51, on open, by Josh Tabish, April 30, 2015.

Comments are closed.