This is a syndicated repost published with the permission of Money Morning - We Make Investing Profitable. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.
Liquidity is money. Regardless of where in the world that money originates, eventually it flows to and through Wall Street. So if you want to know the direction of the next big moves in stocks and bonds, just follow the money. Lee Adler's Liquidity Trader tracks and shows you the monetary forces that drive markets, like the daily real time Federal Withholding taxes shown in this chart. Follow the money. Find the profits! Try it for 90 days, risk free!
Five of the world’s biggest banks pleaded guilty on Wednesday to manipulating foreign currency rates for their own benefit. They will now pay a combined $5.6 billion in penalties.
A sixth bank, Bank of America Corp. (NYSE: BAC), will pay $210 million after being fined by the Fed.
This chart shows how much the banks were fined this week:
JPMorgan Chase & Co. (NYSE: JPM) will pay $1 billion, Royal Bank of Scotland Group (NYSE: RBS) will pay $670 million, UBS Group AG (NYSE: UBS) will pay $550 million, and Bank of America will pay $210 million.
BCS, C, JPM, and RBS pleaded guilty Wednesday to manipulating prices for U.S. dollars and euros. According to The Wall Street Journal, that’s a $500 billion-a-day market. UBS pleaded guilty for manipulating Libor – the London Interbank Offered Rate, or the rate the world’s biggest banks charge each other for short-term loans.
Bank of America didn’t face the same probe from the Justice Department, but will pay a $205 million settlement after the Federal Reserve found the bank was using unsound practices in foreign exchange.
With this week’s settlements, big banks have now paid more than $60 billion in fines over the past two years. Criminal actions have included tax evasion, manipulative trading actions, and mortgage load issues.
While the fines seem massive, Money Morning‘s Capital Wave Strategist Shah Gilani says the penalties amount to little more than a slap on the wrist…
How Much the Banks Were Fined Means Little
“Now we know all the big banks are above the law,” Gilani said. “They are convicted, they admit their guilt, and no-one goes to jail, they just pay more fines.”
“‘Too Big to Fail’ banking is just a superhighway toll road paved with manipulation, fraud, and criminality that leads to egregious profitability.”
Gilani points to UBS’s non-prosecution agreement with the Justice Department as a sign that the U.S. government is acting like a toll collector to the big banks. No real damage is done to these banks, allowing them to continually pay the government for their nefarious behavior.
About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.
Disclaimer: © 2015 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201.
The post How Much the Banks Were Fined This Week – BCS, C, JPM, RBS, UBS, BAC appeared first on Money Morning – We Make Investing Profitable.
Join the conversation and have a little fun at Capitalstool.com. If you are a new visitor to the Stool, please register and join in! To post your observations and charts, and snide, but good-natured, comments, click here to register. Be sure to respond to the confirmation email which is sent instantly. If not in your inbox, check your spam filter.