Four Banks, Including JPMorgan, Fined in Europe Over ‘Cartel’ Behavior
dealbook.nytimes.com
Four Banks, Including JPMorgan, Fined in Europe Over ‘Cartel’ Behavior
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Re: Four Banks, Including JPMorgan, Fined in Europe Over ‘Cartel’ Behavior
#2Does anyone have any idea what happens to the money gathered from these fines?
Re: Four Banks, Including JPMorgan, Fined in Europe Over ‘Cartel’ Behavior
#3One point the article does not touch upon is how much the banks profited from this cartel, and by extension, whether or not the fines were large enough to deter this kind of behaviour in the future.
Re: Four Banks, Including JPMorgan, Fined in Europe Over ‘Cartel’ Behavior
#4One point the article does not touch upon is how much the banks profited from this cartel, and by extension, whether or not the fines were large enough to deter this kind of behaviour in the future.
Honestly, is the answer to this question ever not "no, not even close to big enough"?
Re: Four Banks, Including JPMorgan, Fined in Europe Over ‘Cartel’ Behavior
#5There's no point whatsoever to fine banks, its stupid beyond belief. First, its like issuing a speeding ticket to a billionaire, second, the money does not come from the pocket of the offender, and third, if the unimaginable happens and some bank goes belly up because of this, then we, the taxpayers will bail it out. Again.
Re: Four Banks, Including JPMorgan, Fined in Europe Over ‘Cartel’ Behavior
#6There's no point whatsoever to fine banks, its stupid beyond belief. First, its like issuing a speeding ticket to a billionaire, second, the money does not come from the pocket of the offender, and third, if the unimaginable happens and some bank goes belly up because of this, then we, the taxpayers will bail it out. Again.
Why does the money not come from the pocket of the offender? If banks don't control what their employees do and are forced to pay a hefty fine as the result of that employee doing something wrong, dont you think they will try to control what their employees are doing in the future?
Re: Four Banks, Including JPMorgan, Fined in Europe Over ‘Cartel’ Behavior
#7Does anyone have any idea what happens to the money gathered from these fines?
Gets reinjected in a special fund that the EU can then use where they want. It's usually just injected in the central budget, to reduce the contribution each member country has to pay.
Re: Four Banks, Including JPMorgan, Fined in Europe Over ‘Cartel’ Behavior
#8There's no point whatsoever to fine banks, its stupid beyond belief. First, its like issuing a speeding ticket to a billionaire, second, the money does not come from the pocket of the offender, and third, if the unimaginable happens and some bank goes belly up because of this, then we, the taxpayers will bail it out. Again.
Having a record of past misbehaviour may be useful in a future fight. Even a billionaire has his driving license revoked if he's repeatedly caught speeding.
Sums that are pocket change to JPMorgan are still usefully spent in the public interest. I don't know if 60 million Euros are, in fact, pocket change for JPMorgan. I cynically assume that they budgeted in an accurate amount for fines and other regulatory hiccups when they start on these endeavours.
Assuming you mean the offender is a group of executives that aren't personally liable for these sorts of fines, well, yeah, that's par for the course. IANAL.
Having a bank go belly up because of these fines seems exceedingly unlikely. Regulatory oversight is (on the face of it and among other things) intended to ensure that the system is less likely to fail catastrophically, and fining banks for failing to observe regulation seems like a necessary part of this.
Whether or not the regulatory oversight has the means or even the willingness to implement the mission they present to the public is another debate. I agree that scepticism is warranted.
From that point of view, these kinds of fine may be characterised as something that doesn't materially affect the bank's profits and hence doesn't deter repeat misbehaviour but serves to establish a facade of regulatory action to appease the public.
Re: Four Banks, Including JPMorgan, Fined in Europe Over ‘Cartel’ Behavior
#9The fact that LIBOR is used in other countries as input for interest rates of existing credits is completely ignored, ripple effect of this wrongdoing caused significant drop of life standard and some serious problems to "small" people.
Re: Four Banks, Including JPMorgan, Fined in Europe Over ‘Cartel’ Behavior
#10Why is it always fines? Shouldn't this type of stuff result in jail time?
The people who organised the cartel have likely already got their bonuses and couldn't care less if the bank is fined