Posts filed under “Bailouts”

Top 10 Bank Fines (Post 2008-09 Crisis)

Fines here, fines there, fines everywhere!

The Wall Street Journal discusses the proposed $11 billion dollar JPM fine, but  buries the good stuff in this morning’s article on Jamie Dimon (This Generation’s Greatest Banker! ®)

We have been tracking JPM’s fines, but if you want an industry overview, try this collection: Here is a quick

Top 10 Bank Fines

$25 Billion for Foreclosure processing abuses.
Five Banks: Wells Fargo & Co., J.P. Morgan Chase & Co., Citigroup Inc., Bank of America Corp., Ally Financial Inc.
Regulators: U.S. Department of Housing and Urban Development, U.S. Department of Justice and 49 state attorneys general (2012)

$9.3 Billion for Foreclosure abuses.
Thirteen Banks: Bank of America Corp., Wells Fargo & Co., J.P. Morgan Chase & Co. and 10 others
Regulators: Office of the Comptroller of the Currency and Federal Reserve (2013)

$1.9 Billion for Money-laundering
HSBC Holdings
Regulators: U.S. Department of Justice, Treasury and others (2012)

$1.5 Billion for Manipulating Libor rates.
Regulators: Commodity Futures Trading Commission, former U.K. Financial Services Authority, Swiss Financial Market Supervisory Authority, U.S. Department of Justice (2012)

$920 Million for Lack of oversight of giant bets by ‘London whale.’ (poor internal controls).
J.P. Morgan Chase & Co.
Regulators: Securities and Exchange Commission, Office of the Comptroller of the Currency, Federal Reserve and U.K.’s Financial Conduct Authority (2013)

$550 Million for materially misleading and incomplete information in sale of mortgage-related securities
Goldman Sachs
Regulators: U.S. Securities and Exchange Commission (2010)

$453.6 Million for Manipulation of  interbank lending rates (Libor).
Regulators: U.S. Department of Justice, U.S. Commodity Futures Trading Commission, former U.K. Financial Services Authority (2012)

$410 Million for Electricity market manipulation
J.P. Morgan Chase
Regulators: U.S. Federal Energy Regulatory Commission (2013)

$335 Million for Discrimination against black and Hispanic borrowers.
Bank of America
Regulators: U.S. Department of Justice (2011)

Note that the bad behavior generated big bonuses for execs based on the false (perhaps even fraudulent) depiction of profits. Now that this bad behavior has led to fines which resulted in the profits going away, shouldn’t those prior bonuses also disappear?

What should the shareholders pay for this?




J.P. Morgan Chief Dimon Meets With Holder
WSJ, September 27, 2013

Category: Bailouts, Corporate Management, Really, really bad calls, Regulation

The Financial Crisis Five Years Later

Source: U.S. Department of the Treasury

Category: Bailouts, Think Tank

New Measure of System Risk (circa 2008 Crisis)

Click to enlarge Source: Institute for New Economic Thinking     NYU prof Robert Engle, who long-time blog readers may recall from this post a ways back, won the Nobel prize for his work on Volatility. He has developed new ways to measure “Systemic risk” from his perch at the Volatility Institute at NYU: “We…Read More

Category: Bailouts, Corporate Management, Regulation

The False Crisis Narrative Persists

Last week, I posted Andrew Ross Sorkin’s NYT video on “The Financial Crisis, Five Years Later,” with a single word editorial, all in caps: BULLSHIT. The views espoused in this video were such unmitigated nonsense that I ended up changing my Sunday WaPo column in part to respond to that silliness: Lehman’s thud signaled an…Read More

Category: Bailouts, Corporate Management, Investing, Psychology

Lehman Brothers Anniversary & Economic Recovery

America’s economy is back after the 2008 Lehman Brothers collapse, but only for the top 1 percent. (03:22)

The Colbert Report
Get More: Colbert Report Full Episodes,Video Archive

Category: Bailouts, Humor, Television, Video

Lehman’s Thud Signaled an Enduring Trauma. It Didn’t Cause It.

>     My Sunday Washington Post Business Section column is out. This morning, we look at the role of Lehman Brothers within the broader collapse, Lehman’s thud signaled an enduring trauma. It didn’t cause it. As we have noted many times before, Lehman fell due to the same factors that drove Bear, Citi, AIG,…Read More

Category: Apprenticed Investor, Bailouts, Really, really bad calls

Survey: Americans Realize Big Banks Got the Spoils

Nearly seven-in-ten Americans say large banks and financial institutions have benefited the most from post-recession government policies (apparently, three-in-ten Americans don’t have a clue). Pew reports that sizable majorities say the beneficiaries of government policies are large banks and financial institutions, large corporations and wealthy people. The beneficiaries according to the public:  69% say large…Read More

Category: Bailouts, Really, really bad calls

5 Years After Financial Crisis, Big Banks Are Still Committing Crimes

Preface: Not all banks are criminal enterprises. The wrongdoing of a particular bank cannot be attributed to other banks without proof. But – as documented below – many of the biggest banks have engaged in unimaginably bad behavior. You Won’t Believe What They’ve Done … Here are just some of the improprieties by big banks…Read More

Category: Bailouts, Legal

Open Thread: Who Should Have Been Prosecuted ?

It is the 5th anniversary of the collapse of Lehman, AIG, and the GSEs. At this time 5 years ago, my assumption was that by today, legions of people would have already been prosecuted for their financial crimes. That never happened. I want to open the floor to discuss 3 very specific things: 1. What…Read More

Category: Bailouts, Legal

We still live in Lehman’s shadow

Category: Bailouts, Video