US Set To Alienate Angry Germany Next, As Crackdown Shifts From BNP To Commerzbank, Deutsche Bank

Tyler Durden's picture

As we reported over the weekend in "By "Punishing" France, The US Just Accelerated The Demise Of The Dollar", following the record $9 billion fine against French BNP, the outcry has been fast and furious, with virtually everyone in the local chain of command, from the CEO of Total to the head of the Bank of France (and ECB member) Christian Noyer, all saying that the US is now clearly abusing the reserve power of the dollar and it is time to move away from a dollar-based reserve currency (how that jives with concurrent French demands for a lower EUR is a different, incomprehensible matter entirely).

It appears that having pushed France forcefully into the Russia-China Eurasian, and anti-US camp, the US will now do the same with Germany. Because after infuriating the German population by first refusing to return their gold contained (the legend goes) at the New York Fed, and then with scandal after spying scandal, most recently involving the CIA directly soliciting a German double agent, now the time has come to "punish" Germany's largest banks for the same kind of money laundering that BNP was engaged in. As the NYT and Reuters report, the time has come to shift away from the BNP scandal and focus on what will soon be the Commerzbank and Deutsche Bank fallout.

According to the NYT, the money laundering crackdown is "bound for another European financial center: Germany. State and federal authorities have begun settlement talks with Commerzbank, Germany’s second-largest lender, over the bank’s dealings with Iran and other countries blacklisted by the United States, according to people briefed on the matter. The bank, which is suspected of transferring money through its American operations on behalf of companies in Iran and Sudan, could strike a settlement deal with the state and federal authorities as soon as this summer, said the people briefed on the matter, who were not authorized to speak publicly.

The contours of a settlement, which the authorities have only begun to sketch out, are expected to include at least $500 million in penalties for Commerzbank, the people added. Although prosecutors were still weighing punishments, the people briefed on the matter said that the bank would most likely face a so-called deferred prosecution agreement, which would suspend criminal charges in exchange for the financial penalty and other concessions.

It's not just Commerzbank - a settlement with the smaller bank will merely pave the way for the punishment of the biggest bank of all (in terms of groiss derivative notional held): Deutsche Bank.

A potential deal with Commerzbank — which is expected to pave the way for a separate settlement with Deutsche Bank, Germany’s largest bank — would pale in comparison to the case announced last week against France’s biggest bank, BNP Paribas. The French bank agreed to pay a record $8.9 billion penalty and plead guilty to criminal charges for processing transactions on behalf of Sudan and other countries that America has hit with sanctions, a rare criminal action against a financial giant.

As NYT adds, correctly, "The Commerzbank investigation features an added twist: The bank is 17 percent owned by the German government. It is unclear whether — as in the BNP case, which led French authorities to intervene on the bank’s behalf — the settlement talks could inflame diplomatic tensions between Washington and Berlin."

Of course, since this is the ridiculous "scorched earth" diplomatic policy, if one may call it that, of the Obama administration, nobody is surprised any more that the US president is alienating one former ally after another.

As we first observed a few weeks ago when we revealed JPM's involvement in all of this money laundering, "some critics have questioned why American authorities have set their eye on European banks. The answer, authorities say, is that American banks by and large avoided processing transactions for Iran and Sudan. But American banks are not immune from touching dirty money. Citigroup’s Banamex unit is under investigation for processing money linked to a drug cartel. And in January, JPMorgan Chase reached a roughly $2 billion deal with the authorities over ignoring signs of the Ponzi scheme orchestrated by Bernard L. Madoff, who held accounts at the bank for over two decades."

Not only that but as we wrote over the weekend, the bank that was instrumental in facilitating BNP's money laundering for nearly a decade was none other than JPM. One wonders if JPM also "unwittingly" was the bank that made German money laundering around the globe possible. Did we mention unwittingly?

Still, while one can debate the idiocy of US foreign policy, eager to push European allies into the willing hands of Russia and China at the worst possible moment, when regional and civil wars and conflicts are suddenly breaking out across all key geopolitical hotspots, one wonders: in the case of BNP, the "fine" was as a result of French unwillingness to halt the Russian amphibious warship deal despite US demands. So it would be curious just what the US blackmail against German banks is for: one really does wonder just what punishment Angela Merkel deserves behind the scenes in the eyes of John Kerry et clueless al, to punish her and Germany so blatantly for the entire world to see.

One thing is clear: if the US thinks that Germany will continue to consider America its BFF and make zero contingency plans for when the alliance with the US finally crashes and burns, it will be truly surprised when the Eurasian alliance of Russia and China finally announces its final, all-important, missing link member: the manufacturing and export powerhouse that is Germany itself.

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AssFire's picture

Go GBRICS, I'm counting on you after losing hope of a DC bound asteroid.

Took Red Pill's picture

might want to add France to that, FGBRICS

post turtle saver's picture

Germany is too busy gargling US balls to grow any of their own... I'm surprised they've come up for air long enough to complain

junction's picture

The biggest violator of Iran sanctions was the United States, with Colonel Oliver North leading the way during the Iran Contra affair.  Back in the 80s, the amount of any monetary transfers paled in comparison to the literally tons of narcotics that the CIA had their employee Barry Seal fly into the Mena, Arkansas airport, with the tacit consent of then Arkansas Governor Bill Clinton.  America is now really like 1920s Chicago under the control of organized crime, with crime families operating with impunity outside the law.  Obama is using these violations of sanctions by BNP bank in a manner no different than Al Capone's protection rackets to extort money from Chicago businesses and forcing bars only to sell Capones' rotgut liquor.

MountainsRoam's picture

The USA needs to shut all the German military bases down, and bring all the shit home.. Would save us billions, and Germany does not need us, or probably does not want us there either anymore..

stant's picture

Guess that why we nuked the prince eugen. They don't have anything bigger than a frigate to send to ny for thier gold. And the bilge is toxic on those

NunNun's picture

Sorry but I don't see how the fine is any worse than the money grabs made by the EU and France in so-called anti-trust suits.  For example the contrived charges against Microsoft's so-called monopoly, or France's suit against Google Maps claiming they shouldn't offer a "free" service (which is paid for with ads).  The modern French basically just mimick and whine when it comes to innovation.

Besides, European banks were made whole through money funneled through AIG care of US taxpayers.  The US is basically just getting back some money they already gave these banks.  Protesting this is just ludicrous.

insanelysane's picture

Fortunately no US banks doing anything untoward such as money laundering.  May the farce be with you.

post turtle saver's picture

we only launder drug money, didn't you get the memo?

headhunt's picture

How much longer to the election?

GetZeeGold's picture



It's've still got a couple months to sneak in through the southern border.


I'd do even if you are already a'll get a lot better heathcare deal. Plus a free air flight to anywhere you want to go.


Just make sure your shots are up to date before you do it.

Bingo Hammer's picture

An election?'re kidding, that's a fairy story they tell the sheeple

GetZeeGold's picture



No worries....we've got seal team 7 working on stealing the Diebold codes. No more details....I've probably said too much as it is.

krispkritter's picture

I think you meant 'selection'.

timeless21's picture

No one gonna find out about this, they said.

drendebe10's picture

Hahaha.  The policies of the incompetent corrupt arrogant narcissistic illegal indonesian kenyan alien muslim liar in chief and its corruot democrap minions are a roaring success! 

Luckhasit's picture

This shit is deliberate and treason. 

GetZeeGold's picture



Yeah, but there's nothing we can do about case you haven't noticed.....the President is black.


Wudda ya gonna do? Cat's got a get out of jail free card.


Unless you see Nancy Pelosi pressing charges....and I just don't see that happening.

buzzsaw99's picture

driving a wedge between germany and the usa is one of the best things that could happen from a patriotic point of view

eurogold's picture

Yes ! Petrodollar dead, and German Russian Axis ! Bring it on !


buzzsaw99's picture

move our troops from stuttgart, germany (et al) to juarez mexico i say. fuck germany.

eurogold's picture

I agree ! move all U.S. troops and installations out of Germany now !

buzzsaw99's picture

i find it mildly amusing that people on both sides (you and i for instance) of this issue agree so readily yet the maggots just stay and stay and stay. i know they want to screw everyone over by not doing what needs to be done and doing what does not need to be done but jebus h farging christ these people are god damned retarded or something.

edit: btw - were it up to me i would give germany's gold back even if it cost the usa a trillion dollars to do it.

GetZeeGold's picture



i would give germany's gold back even if it cost the usa a trillion dollars to do it.


Dude, do you have any idea what that would do to the price of gold?

buzzsaw99's picture

i would think for someone (such as yourself) that would be viewed as a good thing. :)

USisCorrupt's picture

That's why he said if it even cost a Trillion $'sto do it. It already over, the show is the only thing left.

intric8's picture

The alienator will soon be the alienated

Global Hunter's picture

I think the people who were running the WWF in the mid 80s are running the US government now.  They might as well just bring out Rowdy Roddy Piper, Nikolai Volkoff and the Iron Sheik at this point because it they would at least be more realistic.

Seize Mars's picture

Correct. It's all just another show.

insanelysane's picture

Mrs. WWF tried to run for Senator in Connecticut a few years ago.

Zeta Reticuli's picture

I moved out of the state (and the country) just after that. America has turned into Bizarro Land.

gallistic's picture

Might as well resurrect SGT Slaughter too...

Bingo Hammer's picture

Obama's new book:

"How to Loose Friends and Totally Piss-Off Whole Nations", written between rounds of golf at the new US home for the criminally insane....The White House.


COSMOS's picture

I hope his golf game is better than this shit.  But somehow I highly doubt it.  You get what you get with affirmative action, and its sure not the cream of the black community.  P Diddy would make a heck of a better president than obumma

Global Hunter's picture

RZA as president would be a big improvement to what the US has now.

Bingo Hammer's picture

"I hope his golf game is better than this shit"'d have to be but I'm lead to believe his deeper passion is being a real "sucker" for some serious Mich(elle) "punishment"

fonzannoon's picture

I wonder why Germany does not agree to pick up the tab on both banks fines and just ask the U.S to sell some of their gold off and use the proceeds to pay the fines since it's never getting repatriated anyway and the U.S clearly does not have it.

Rubicon's picture

Actually, German gold purchasing will be something to watch - if they have any sense!

Incubus's picture

i prefer ...ahem, ah, tight friends.  keep your loose friends.

falak pema's picture

A house where Lincoln's wife used to haunt the corridors in her sleep after her son's death, during the civil war, guiltily murmuring : when will this killing end? 

Looks like Macbeth had many sons and they all lived at 1600 Pennsylvania Avenue.

craus's picture

We can alienate the Euros.
We got the Japanese & their 102 tractor.
With Oliver Takahashi driving it with his big smile.

gallaghd5099's picture

I am a little confused. The banks, our banks and their banks, break every law that is possible, fixing markets (too many to name), money laundering and fraud and it is ok in your eyes. The government tries to reign them in and the banks get senators and their governments to stop any actions and our government is wrong. What should we do with the banks? Not try to stop them? Let them run rampant over the world economy. What planet are you people talking about? 

fonzannoon's picture

you went off the tracks when you put forth the possibility that the government is trying to reign them in. Fining them is just asking for their cut of the pie.

TuPhat's picture

You are a little confused.  You got that part right.

Bernoulli's picture

It all smells fishy. Why would they all start throwing around billion dollar fines all of the sudden and banks are happily bending over and wiring the money to the US?

What is really behind this?

Maybe these "fines" are in reality bribes to keep the system alive with its dodgy accounting rules ("mark to unicorn"), ridiculous stress tests rules etc., "netting" rules to mark down derivative risks, past and future bailout insurance ("hey guys, we're gonna bail you out, but you have to wire some cash now... we'll just disguise them as "fines" for the sheep and the media"). Governments, Central banks, authorities and banks all teaming up together against pension funds, insurances, taxpayers?


buzzsaw99's picture

pay tribute bitchez. that's exactly what it is

max2205's picture

No such thing as a free swap

Coletrane's picture

"if you agree to a delay the repatriation of your gold, we will forgive 90% of the fine"