Tag: Citigroup

Bankers Make a Mockery of the Law, and No One Goes to Jail

200px-Jamie_Dimon

Respectfully submitted by Lawrence E. Rafferty (rafflaw)-Weekend Contibutor

It has happened again.  Several big banks have been caught with their hands in the cookie jar and are paying billions in fines for their admitted transgressions.

“On Wednesday, four large global banks — Citigroup, JPMorgan Chase, Barclays and Royal Bank of Scotland — pleaded guilty to a series of federal crimes over a scheme to manipulate the value of the world’s currencies. The Justice Department accused the banks of collusion in one of the largest and yet least regulated markets, noting that at one bank one trader remarked “the less competition the better.”

That lack of oversight, coupled with the pressure to squeeze profits from a relatively middling business, set the stage for this scandal, one that unfolded nearly every day for five years. The crimes described on Wednesday also painted the portrait of something more systemic: a Wall Street culture that enabled many big banks to break the law even after years of regulatory black marks after the crisis.” New York Times Continue reading “Bankers Make a Mockery of the Law, and No One Goes to Jail”

Just How Much of Big Bank Fines Are Actually Paid and Who Profits?

US-DeptOfJustice-Seal_svg

Respectfully submitted by Lawrence E. Rafferty (rafflaw)- Weekend Contributor

It should not surprise any of the regular visitors to this blog that I have written many articles detailing the abuses of many of the Big Banks and the resulting fines that they have paid on multiple occasions.  When a taxpayer reads about Billion dollar settlements being paid by Banks and financial companies as a result of a Justice Department investigation, they probably assume that the entire amount of the fine is being paid.

Those very same taxpayers may be surprised to learn that in many cases, the Banks are able to deduct from their taxes up to 75% of the fines and settlements made with the Justice Department. Continue reading “Just How Much of Big Bank Fines Are Actually Paid and Who Profits?”

Corporate Greed

department of treasury

Respectfully submitted by Lawrence E. Rafferty (rafflaw) Weekend Contributor

Now that we have celebrated Thanksgiving, I was struck by the news that Congress is considering legislation that would grant large tax breaks to corporate citizens and actually remove tax breaks for the poor and the middle class.

‘ “This Congress seems willing to give huge tax cuts to big businesses—who are already doing better than ever—but somehow can’t prevent tax increases on 50 million working Americans that will occur when expansions of the Earned Income Tax Credit and Child Tax Credit expire,” Harry Stein, the Associate Director for Fiscal Policy at American Progress Action Fund, told ThinkProgress. “This is a great deal for CEOs and a terrible deal for struggling families.”’ Nation of Change  Continue reading “Corporate Greed”

Banks Ignore the Bankruptcy Laws

US Trustee Program

Respectfully submitted by Lawrence E. Rafferty (rafflaw) Weekend Contributor

In the past, I have written about the Big Banks continued unlawful actions that only result in “slap on the wrist fines” that in many cases are passed on to the shareholders and/or used as a tax deduction. It seems that Wall Street and the Banksters have not learned a thing.  Or have they?

The latest wrinkle in Banksters taking advantage of American citizens is noted in a Crooks and Liars report which detailed an investigation into several Big Banks and their alleged refusal to honor the orders of Bankruptcy judges across the country. Of course, the “usual suspects” have been named in the latest investigations.  Continue reading “Banks Ignore the Bankruptcy Laws”

Bank of America Escapes Jail… Again

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Respectfully submitted by Lawrence E. Rafferty (rafflaw)-Weekend Contributor

It seems that a week doesn’t go by without news of the latest Big Bank agreeing to pay billions in a settlement with the government over their past and continuing abuses concerning mortgages.  This past week was no exception.

“Preliminary reports say that a $16 to $17 billion settlement will soon be announced between the Justice Department and Bank of America. That would break the record for the largest bank settlement in history, set less than a year ago by a $13 billion agreement between Justice and JPMorgan Chase.” Crooks and Liars

Sixteen billion dollars is not chickenfeed!  However, as we have learned in the many past settlements, the dollar amounts can be a little deceiving.  Continue reading “Bank of America Escapes Jail… Again”