On Wednesday, the Justice Department announced that 5 major banks will be fined a total of about $5.7 billion. The banks plead guilty to manipulating global currency and interest rates as far back as 2007. Citigroup, JPMorgan Chase, Barclays the Royal Bank of Scotland, and Swiss bank, UBS, will pay fines that symbolize the government’s desire to reign in the power of the financial elite.
The New York Times painted the fines as a win because while banks have entered guilty pleas before, they have always been from subsidiaries of the parent companies. This time, the parent companies themselves plead guilty.
While symbolically, the move appears to reprimand evil bankers, the reality is that such fines are miniscule compared to the profits banks reap. $5.7 billion dollars is nothing compared to the $40.24 billion net income…
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