There are a couple of phrases that ripple through these kinds of actions. The first is a major financial institution saying that they will voluntarily pay the fine so as to be able to put it behind them and they can focus on the future. The second is that they pay the fine but have agreed not to admit any wrong doing.
They must have made a lot of money on the deal to have so easily agreed to pay 2.43 billion dollar fine. This was paid to those that owned stock in the company. Makes ya wonder who is in charge if the bank has to pay the owners in such a suit.
Among the allegations are false and misleading statements about both companies financial health. Don’t know about the law but somehow it seams as if laws were broken and no one is going after them. Then again this is characteristic of the current DOJ policies.
The more I see of such items in the news is the less confidence I have in the political system I have known so many that have given their lives to defend. I think in terms of the men and women that have found their way into prison for crimes that pale by comparasen. Then my mind harkins back to such polemics as Smedley Butler’s War is a Racket and Iraq for Sale: The War Profiteers
PS: Two days after I finished the above entry, there appeared this acticle in the local paper. Where as this information may or may not be common knowledge on the street, it was certainly new to me. I mean the scope is enourmouse and as such have pasted the highlights of the article:
Libor scandal is a clever, purposeful, coldly calculated slow rape of the industrialized world. And JPMorgan Chase’s (JPM-$42) complicity is so deep that investigators need a bathysphere to find the bottom of this scam. And though the collective damages are probably in the trillions, JPM’s fine will be a pittance, just a scant few hundred million dollars. Other liabilities affecting JPM are:
1) manipulation of the electricity market in California,
2) conspiracy with MasterCard and Visa to regulate credit card swipe fees,
3) aiding and abetting Bernie Madoff’s Ponzi scheme,
4) aiding and abetting Jon Corzine and MF Global,
5) the $130 billion sale of knowingly bad mortgages to investors during the financial crisis,
6) problems concerning mortgage foreclosure procedures,
7) management’s personal involvement in Enron’s bankruptcy,
8) pension fund securities fraud,
9) rigging of municipal bond transactions, and
10) promoting the sale of unsuitable JPM mutual funds to clients.
Make no mistake, it gets better and I invite you to read for yourself:JPMorgan Chase’s Problems and the news gets better Wall Street Investors In Dark On Liability Of Libor Probes =
The above PS was Sunday and this is Monday: Banks reap profits on mortgages after QE3 ‘…Bank profits from new mortgages have soared since the Federal Reserve began its third round of bond purchases two weeks ago, fuelling the debate over the fallout of the latest dose of quantitative easing….’