With crimes like these, it is nearly definitional.
It is trivial to put a price on the value of an action like this; if the fine for the action is less than it grosses, it is just a tax.
And not just the actions regulators catch, but the others too.
do { new Crimes() } while ( fine(Crimes.detected) < profit(Crimes.all) )It's illegal by definition. But since they can pay a fine for a net gain, you can say that they legally profit from doing something illegal.
Obviously. Do you think the SEC is full of morons?
The $3 billion in fines Wells Fargo paid versus the multiple billions it made from 2002-2015. The bank has almost $2 trillion in assets as of 2020.
> Do you think the SEC is full of morons?
No, worse. Cowards. Entirely too many see the SEC as a pathway to a high-paying job on Wall Street. You learn the ins and outs of compliance and go from a GS-8 - GS-13 making $70,000 - $150,000 a year, to making $1 million a year helping these banks, hedge funds, and other investors sidestep regulations by the most narrow of line-toeing.
This had ZERO to do with Front Running.
This is not a logical sentence. They are obviously getting fined because it's illegal. The traders involved are also terminated, fyi.
All banks are required to submit automated reports on Front Running detection algorithms daily to the regulators. Every trade is evaluated by the compliance systems.
If you think the fines are not big enough or that the algorithms are missing things, then make that more logical argument.
Stay away from hyperbole because it discredits you.