Banks Keep Billions of Taxpayer Bailout $$ For Forex Probe Fines

Why is it we just know that no senior executive will do any meaningful jail time? And, commensurately the defense of “I was only following orders” will be the appeal of their underlings. When a government supervises the ‘oversight’ of itself the people never win. Not only do the guilty skate, but they’ll use our own money for their escape! Without any political party warranting our trust, ‘lamppost justice’ is beginning to come into focus.

Remember, loyalty and obedience to any political party should not be confused as misplaced patriotism for your country. The German people learned that lesson (for a while) with their adored leader of national socialism, didn’t they.

WIN-WIN suggestion: Small business owners begin offering their products and services for physical silver coins. Offer to redeem for a 1% higher premium than larger dealers of your prospective customer’s choice! This not only gives you a method to accumulate honest money, but deprive the banking crooks of your sweat and reward. Give pause a moment to ponder what if this method of doing business began to take hold!? It’ll start right here, with you.

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Linette Lopez Nov. 7, 2014, 10:18 AM

Wall Street has been bracing for a billion-dollar currency manipulation investigation that will be over in a few weeks, says The Wall Street Journal.

In the past few weeks, it seems banks have been scrambling to prepare for whatever regulators on both sides of the pond may find after a fairly boring earnings season. Performance was average to slightly below, and the total trading rout banks expected didn’t turn out to be that bad.

But then the disclosures started coming.

First Citigroup revised its earnings down to $0.88 per share from $1.07 per share to add $600 million to its legal reserves.

Then JPMorgan Chase also disclosed that US and UK regulators were conducting criminal (the Department of Justice is in there) and civil probes into its Forex trading operations. Of course, it’s cooperating, but it has no idea how much it could lose in such a settlement — maybe nothing, maybe $6 billion.

Finally, on Thursday after the closing bell, Bank of America followed Citi and revised its earnings down by $400 million, adding that to its legal reserves to deal with whatever comes of the probe.

So here’s what we know about the investigation: Barclays, HSBC, Royal Bank of Scotland Group, UBS, Citigroup, JPMorgan, and Bank of America are all involved.

Regulators will be charging these banks with failing to stop their employees from manipulating a specific currency exchange benchmark rate. There will be transcripts of their activity (always the most interesting part).

The UK banks will take about $1.8 billion of fines for this, but regulators in the US haven’t finished negotiating. The DOJ hasn’t finished its civil and criminal investigations either, and those may not be done until next year.

So in the meantime, save up.

via businessinsider