Another week, another set of billion-dollar fines. Banking as usual.
So here we are again, this week various countries are fining (criminal fines not civil penalties) various global financial institutions billions of dollars/pounds each (ie a couple of days turnover). This time it's for a foreign exchange cartel, if I've understood right.
And as usual, managers are only responsible when things go right and they deserve a megabonus, not when things go wrong and they deserve (you choose).
No wonder the big banks see little reason to trade honestly and fairly, when any penalty they do occasionally pick up can and will be passed straight through to their paying customers.
Banks behave badly, banks eventually get found out (not by regulators or auditors but by internal whistleblower in this case), banks get criminal convictions, banks have their wrist gently slapped, banks (and bank management) continue to do business largely the same way as before
Market forces don't seem to be working out quite right here. Not for the non-banksters anyway (and that includes any banks that are for some reason trying to play an honest game and hoping for a level playing field).
Highlight: The possibility of five large banks pleading guilty to criminal charges in a single day—including the largest and third-largest U.S. banks by assets, J.P. Morgan and Citigroup—would have been unthinkable only a few years ago, when executives warned the fallout from such a move would be disastrous to their ability to conduct business. But other large overseas banks have pleaded guilty to criminal charges in the past year, with minimal effects to their operations. The five banks said they expected little disruption to business.