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Law & Order Discuss Big Bank 'Crime of the Century' Results in Guess What? No Jail Time for Anyone at the Political Forums; While corporate watchdogs hailed the record $2.5 billion settlement paid by Deutsche Bank to U.S. and U.K. authorities for its ...

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Old 04-26-2015, 04:42 PM
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Post Big Bank 'Crime of the Century' Results in Guess What? No Jail Time for Anyone

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While corporate watchdogs hailed the record $2.5 billion settlement paid by Deutsche Bank to U.S. and U.K. authorities for its rate-rigging role in the massive LIBOR scandal, some noted that the fine—while large—suggests that some institutions are still considered "too big to jail."

Authorities announced Thursday that Germany's biggest bank would pay $2.5 billion in penalties, a record for cases involving interest rate fraud, which have already targeted banking behemoths like Barclays and UBS. Officials said the wrongdoing at Deutsche Bank lasted from 2005 to 2011 and touched employees in London, Frankfurt, New York, and Tokyo.

The New York Times reports that Deutsche Bank "also agreed to accept a criminal guilty plea for the British subsidiary at the center of the case. It is the most significant banking unit to accept a criminal plea in the long-running investigation into the manipulation of the London interbank offered rate, or LIBOR."

The LIBOR rate is an average of what banks charge for lending to each other. In addition, it sets a benchmark for interest rates for trillions of dollars' worth of loans around the world—from mortgages and student loans to credit cards and complex derivatives.

The penalty follows a seven-year investigation into how some of the world's largest financial institutions secretly conspired to rig benchmark interest rates to their benefit.

But not everyone agrees that the punishment announced Thursday fits what has been called "the crime of the century."

"Law enforcers found repeated examples of manipulation as they investigated the bank," said Bartlett Naylor, financial policy advocate in Public Citizen's Congress Watch Division, on Thursday.

"For example, they discovered pervasive fraudulent practices where traders gave false information about rates at which they borrowed or loaned money with other banks," he said. "That established false benchmarks on which other rates were based. That harms average Americans when they agree to mortgages. Law enforcers also found that Deutsche Bank withheld and even destroyed information about the investigation. Yet, surprisingly, despite the severity of these offenses, the government concluded that these crimes should be punished only through a financial penalty."

Bartlett continued: "This settlement, which involves no jail time for any traders, seems out of sync with the problems identified. To make matters worse, many of the traders responsible for the frauds remain employed at Deutsche Bank. The DOJ claims that it may still prosecute individuals, and we hope it will pursue such work. To date, some traders at other firms such as Rabobank have been convicted, but no senior officers of any of the banks involved in the LIBOR case have faced charges."

Indeed, as journalist Valentin Schmid points out at Epoch Times, "Insider trading in individual stocks seems minute in comparison, yet many people have been jailed for 10 years or more. Time criminals working for large international banks are given the same treatment."
Big Bank 'Crime of the Century' Results in Guess What? No Jail Time for Anyone | Common Dreams | Breaking News & Views for the Progressive Community

On the flip side, a $31 pot sale can land you in jail for 12 years.
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Old 04-26-2015, 08:46 PM
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Default Re: Big Bank 'Crime of the Century' Results in Guess What? No Jail Time for Anyone

Bankers are the very people who buy each political party members off.

We should all be very leary if they are in the room...
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