What I definitely don't want to see anymore is letting big banks get away without any punishment "because that would endanger the economy." It's ultimately a poor excuse for not punishing criminal behavior, because failure to punish is defacto condoning of the crime, and it will happen again in the future. If you want to stop that, then some form of effective punishment must be done.
Numbers seem very similar. Coincidence?
"In 2014, the DoJ asked Citigroup (C.N) to pay $12 billion to resolve an investigation into the sale of shoddy mortgage-backed securities, sources said. The fine eventually came in at $7 billion."
http://www.nytimes.com/2016/01/15/business/dealbook/goldman-...
I wish the judge would prevent a settlement here and have the case tried. And put some evil bankers behind bars. And put the DoJ into its place in coming up with these outrageous amounts instead of a list of names of folks who did bad stuff! And their bosses as well for failing to control their thundering herds.
bribery in Russia, fraud around CO2 certificates, the list is pretty big.
you can argue that the past dual-leadership of Ackermann and Jain where heading a criminal enterprise.
after VW the second large German fuckup.
The US clearly started the mess in the banking world and took the whole world down by selling it their housing loans. German bankers of the early 90s had no idea about the whole show, but were stupid enough to drink their Kool-Aid.
VW has been building smaller cars with lower mileage than its US counterparts for decades but now somehow is the prominent environmental offender?
"Bribery in Russia" and the German bank is the one that needs to be called out for this? Come one.
The other investigations are handled by other entities in Europe and Russia. And there are two levels at play: breaking the law in the first place and then being stupid enough to be caught.
See here for details: https://en.wikipedia.org/wiki/Deutsche_Bank#Controversies
It is a shit-show of epic proportions.
https://en.wikipedia.org/wiki/Josef_Ackermann
All of this happened under his CEO tenure, he collected millions of EUR in salary and bonuses, resigned in 2012. Runs the WEF, Bilderberg group, etc.
An expert. But Capone and Escobar got hunted down. This guy is not in jail. A typical Swiss banker.
1) Deutsche is a "too big to fail bank" in Germany,
2) This fine is being imposed by the USA
3) Deutsche is already teetering as it without this fine. See: https://www.ft.com/content/9a018afe-3e37-11e6-9f2c-36b487ebd...
4) It's borrow costs, which banks live and die by, are increasing due to all of this which leads to pretty awful feedback cycle that it may have trouble getting out of without ending up being owned by the German government.
The problem for the world si that Deutsche has a "shit load" of derivative exposure, now in today's world, almost all banks have some, but Deutsche, under Boaz Weinstein took bank derivative exposure to a whole new level and they've been trying to dig themselves out of this hole for the past 5=7 years.
http://www.cnbc.com/2016/07/15/deutsche-bank-a-ticking-time-...
The world's financial community can't really let Deutsche fail as this would trigger a whole whach of ISDA agreements, sort of how in 2011, Greece's banks failed, but they didn't "fail" in the strictly legal sense that would trigger default clauses on their agreements.
Who would have thought that the German's would be the ones to start the next financial collapse:)
No as to the fine, they aren't anywhere near the first bank to be charged and fined and all the others had their fines cut atleast in half.
Just incase you don't think this is terribly serious..... Deutsche Bank's 5 year default probability just jumped up to 15.8%. For a bank, that's huge, no other large bank is anywhere close to that!!!