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The Price To Keep Bankers Out Of Jail: $110 Billion And Rising

Tyler Durden's picture




 

Six years after the greatest financial crisis in modern history, not a single prominent - and bailed out - banker (or frankly any for that matter) has gone to prison. Still, in the great squid pro non-jail quo, regulators and the DOJ have had to be appeased somehow. That "somehow", as has been revealed over the past several years, is with quarter after quarter of massive legal charges, settlements, penalties and so on. Of course, since the banks wouldn't exist in the first place if it wasn't for a multi-trillion taxpayer bailout, they don't mind because the math is quite simple: being converted into a government utility is better than being bankrupt anyday. Also, it is shareholder money, not an actual clawback (oh, the horror).

So what is the total amount of shareholder (and by implication, taxpayer) money that has been spent by the bankers to distract regulators and the "cops" from not jailing a single one of them? According to the following chart from the WSJ, just the six biggest offenders have spent over a whopping $110 billion to keep the government happy and the US prison population in check.

Here, one could add a tangent, that the more money spent on settlements by any given bank, the more in need of a bailout it was in the first place. In which case one dreads to think just how bankrupt Bank of America will be when the next inevitable crisis hits, and how many trillions in taxpayer bailout funds it will need next time around...

Source: WSJ

 

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Thu, 08/14/2014 - 11:07 | 5092263 101 years and c...
101 years and counting's picture

prison population in check?  you mean cemetary population in check.  these bankers would off themselves before every serving a day in jail.  they've never experienced a hard day's work.  they always prefer taking the easy way out.

 

Thu, 08/14/2014 - 11:12 | 5092272 bigdumbnugly
bigdumbnugly's picture
The Price To Keep Bankers Out Of Jail: $110 Billion And Rising

 

so THAT'S what those goddam atm charges are all about....

Thu, 08/14/2014 - 11:15 | 5092306 AlaricBalth
AlaricBalth's picture

The state giveth and the state taketh away.

2008 Bank Bailout chart.

http://www.ritholtz.com/blog/wp-content/uploads/2008/10/bailouts-to-bank...

Thu, 08/14/2014 - 11:18 | 5092326 NoDebt
NoDebt's picture

"A bargain even at twice the price."

Thu, 08/14/2014 - 11:44 | 5092501 max2205
max2205's picture

Money laundering in its highest form

I hope they get blowback and soon

Thu, 08/14/2014 - 11:19 | 5092325 LawsofPhysics
LawsofPhysics's picture

You sir are an optimist.  This is the single most important question every single taxpayer should be asking.

Especially after our own former treasury secretary admits (along with many others) that certain "arsonists intentionally destroyed the American financial system, and profited from doing so".

The question is simple, how many of these arsonists have gone bankrupt and to prison?

Everything else at this point is just noise, bla, bla bla bla, name names motherfucker.

"full faith and credit"

tick tock...

Thu, 08/14/2014 - 11:26 | 5092368 firstdivision
firstdivision's picture

Same way Israel holds the world hostage with its nukes.  They demand help from the west, or they launch should a force attack Israel. 

Thu, 08/14/2014 - 11:46 | 5092513 Herd Redirectio...
Herd Redirection Committee's picture

I always liked the story of Samson, bringing down the temple with his last bit of strength.

Then I learned it served as justification for Israel's nuclear 'policy'.  Not as big a fan, any more!  :)

Thu, 08/14/2014 - 14:12 | 5093277 doctor10
doctor10's picture

hmmm-does this include monies paid to certain critical bureaucrat regulators and congressional representatives?

Thu, 08/14/2014 - 15:29 | 5093690 Absalon
Absalon's picture

Some of them should have gotten the death penalty for the number of lives they destroyed.

Thu, 08/14/2014 - 11:08 | 5092265 Kaiser Sousa
Kaiser Sousa's picture

they should all be wiped out...literally.
DEATH TO THE MONEYCHANGERS...

Thu, 08/14/2014 - 11:20 | 5092328 LawsofPhysics
LawsofPhysics's picture

They have been cleared from the temple before, it certainly wouldn't be the first time such action is required.

Thu, 08/14/2014 - 11:33 | 5092422 Da Yooper
Da Yooper's picture

AAAAAAAAmen

 

If J6P does what the bankers do

 

he goes to jail

 

BUT the tribal bankers get a pass

 

Sorry but this scam on the tax payers is getting old

 

And at some point a price will be paid

Thu, 08/14/2014 - 11:47 | 5092523 Herd Redirectio...
Herd Redirection Committee's picture

Think about it, whats the difference between the USD in your pocket, and a high quality counterfeit?

The difference is ONLY the source.  Meaning:  We have put a LEGAL counterfeiter in charge of the currency!

Thu, 08/14/2014 - 11:09 | 5092270 Unknown Poster
Unknown Poster's picture

Corzine was railroaded. /s

Thu, 08/14/2014 - 11:20 | 5092333 NoDebt
NoDebt's picture

Speaking of Jon Corzine, guess what he's been up to lately?  Laying low?  No.  Hosting a fundraiser for Hillary Clinton in the Hamptons.  Seriously.

http://politicalticker.blogs.cnn.com/2014/08/07/embattled-jon-corzine-to...

Thu, 08/14/2014 - 11:28 | 5092378 Unknown Poster
Unknown Poster's picture

He is the poster boy for this corruption.

Thu, 08/14/2014 - 11:29 | 5092402 NoDebt
NoDebt's picture

And Hillary is snuggling right up next to him.  You gotta love that.

Thu, 08/14/2014 - 13:22 | 5093042 JRobby
JRobby's picture

maybe someday the sheeple will "get it"?

Nah!

Thu, 08/14/2014 - 11:36 | 5092453 Dr. Engali
Dr. Engali's picture

Fucking sickening. Where's Isis when you need them?

Thu, 08/14/2014 - 11:47 | 5092507 NoDebt
NoDebt's picture

More important, where's the fucking media reporting it?  Maybe I missed the huge story about this in the MSM, but I got clued in by some local radio guy who said something about it this morning on my way in.  I didn't believe it.  I thought Hillary would never be so stupid as to be seen with this guy.  Wrong, wrong and wrong.  She's doing it, she'll get the money and nobody will cover it, so there will never be any blow-back on her.

Thu, 08/14/2014 - 12:30 | 5092752 mtl4
mtl4's picture

They are too busy trying not to be labeled communists, er, terrorists..........whatever the new McCarthism term du jour might be.

Thu, 08/14/2014 - 11:46 | 5092520 max2205
max2205's picture

Seen at Iraqi fair and coming to a fair near you

Deep fried head on a stick

Yum!

Thu, 08/14/2014 - 11:42 | 5092493 Blood Spattered...
Blood Spattered Banner's picture

How brazen.  They aren't even pretending to do their jobs anymore, are they?

Thu, 08/14/2014 - 11:48 | 5092528 NoDebt
NoDebt's picture

You mean the media?  They would say they are, since their job is to be the propoganda arm of the Democratic party.  That's their job security.

Thu, 08/14/2014 - 11:09 | 5092273 youngman
youngman's picture

See...money really can buy you love...

Thu, 08/14/2014 - 11:09 | 5092274 FieldingMellish
FieldingMellish's picture

BoA won't need a bail-out. The depositors will provide the money.

Thu, 08/14/2014 - 11:17 | 5092315 Dr. Engali
Dr. Engali's picture

They didn't move 53 trillion in derivatives to the bank holding side for nothing.

Thu, 08/14/2014 - 13:40 | 5093121 shitco.in
shitco.in's picture

http://www.federalreserve.gov/newsevents/speech/fischer20140811a.htm

As part of this approach, the United States is preparing a proposal to require systemically important banks to issue bail-inable long-term debt that will enable insolvent banks to recapitalize themselves in resolution without calling on government funding--this cushion is known as a "gone concern" buffer.     

Thu, 08/14/2014 - 11:09 | 5092275 SoilMyselfRotten
SoilMyselfRotten's picture

Thanks to the Banksters and Belgium so we can keep the lights on

Thu, 08/14/2014 - 11:10 | 5092277 Rainman
Rainman's picture

I'm sure Hank Paulson estimated a $100B kickback to .gov when the deals were made ... so the banksters are a little over budget. 

Thu, 08/14/2014 - 11:50 | 5092537 Herd Redirectio...
Herd Redirection Committee's picture

I looked at a business bank statement the other day, it showed how much interest the account had earned, and how much had been paid in fees.

Interest earned : $1.83

Bank fees for the month:  $30

In a month w/ no transactions! 

Thu, 08/14/2014 - 13:26 | 5093063 JRobby
JRobby's picture

Hopefully economic war crimes will become a crime if this revolution ever gets some momentum.

Hank will be among the first tried for the crimes. There will be so many. Should be great for cable ratings. Will there still be advertising?

Thu, 08/14/2014 - 11:11 | 5092284 youngman
youngman's picture

and I am sure some Swiss bank accounts have increased in value...and that is off the record..not included in these numbers

Thu, 08/14/2014 - 11:11 | 5092290 q99x2
q99x2's picture

You should include the cost of the DHS, NSA, CIA EPA and basically the cost of everything required to fund the dipshit NWO concept.

Thu, 08/14/2014 - 11:12 | 5092295 nakki
nakki's picture

So how does Goldman only pay a "vig" of 900 million? 

Thu, 08/14/2014 - 11:22 | 5092343 NoDebt
NoDebt's picture

Doing 'God's Work' has it's rewards.

Thu, 08/14/2014 - 14:21 | 5093314 JRobby
JRobby's picture

Hopefully going to HELL

Thu, 08/14/2014 - 11:37 | 5092461 Blood Spattered...
Blood Spattered Banner's picture

GS indirectly paid much more through extensive lobbying and occupying every meaningful office in the Treasury Department. 

Thu, 08/14/2014 - 14:23 | 5093326 JRobby
JRobby's picture

But the payoff was worth it

Thu, 08/14/2014 - 12:32 | 5092762 mtl4
mtl4's picture

Nice to have an uncle named Warren isn't it?!

Thu, 08/14/2014 - 11:14 | 5092305 Dr. Engali
Dr. Engali's picture

It amazes me that Bofa is still around. Not only did they way overpay for Merrill Lynch (which should have gone under), but they also bought Washington mutual during the crisis. The fact that they even exist after those two shitty purchases and the "assets" that came with them just goes to show how much currency the fed is feeding them through the back door.

Thu, 08/14/2014 - 11:20 | 5092334 LawsofPhysics
LawsofPhysics's picture

"They" are a primary dealer, they new that the government and taxpayer would be forced to buy all that junk paper.

Thu, 08/14/2014 - 11:34 | 5092356 Dr. Engali
Dr. Engali's picture

My bad, the Morgue bought WaMu. Aging and wine does have it's affects.

Thu, 08/14/2014 - 11:39 | 5092469 Amish Hacker
Amish Hacker's picture

What though youth gave love and roses,

Age still leaves us friends and wine.

                        Thomas Moore

Thu, 08/14/2014 - 12:04 | 5092596 ZeroPoint
ZeroPoint's picture

They launder Bush family drug cartel money. They are not going anywhere.

Thu, 08/14/2014 - 11:24 | 5092353 americanspirit
americanspirit's picture

I wonder what the cost is of keeping former and present administration (and corporate) war criminals out of jail in the Hague.

The cost in dollars AND lives. 

Thu, 08/14/2014 - 11:28 | 5092377 kchrisc
kchrisc's picture

Imagining the DC US government putting these criminals in jail is like imagining the monkey putting his organ grinder in jail.

An American, not US subject.

Thu, 08/14/2014 - 11:29 | 5092391 numapepi
numapepi's picture

The problem is that sharholders are always punished for the decisions of management. In a sane world those managers who decided to break the law would be ppunished individually. Whipping boys didn't work in the 18th century and they don't work now.

I have written more on this subject here:

http://incapp.org/blog/?p=1795

Thu, 08/14/2014 - 11:30 | 5092403 Yen Cross
Yen Cross's picture

   The .gov getting paid back it's own loaned out money, one sock puppet bankster at a time...

Thu, 08/14/2014 - 12:10 | 5092406 RaceToTheBottom
RaceToTheBottom's picture

The problem with these sorts of articles is they only cover the direct costs, not the indirect costs.  They don't cover the costs of maintaining a ZIRP environment for 5+ years.  Otherwise they would be multiple Trillions.  

The entire cost was to keep Derivatives from blowing up and the entire Financial industry from falling appart, which would also involve putting them in jail...

Thu, 08/14/2014 - 11:34 | 5092440 Loophole
Loophole's picture

Who are the worst crooks, businessmen who create wealth or politicians who grab it?

Thu, 08/14/2014 - 11:43 | 5092477 Dr. Engali
Dr. Engali's picture

Putting aside the fact that these "businessmen" have plundered the U.S eCONomy, it's not wealth these "businessmen" are creating. It's debt, which is the opposite of wealth.

Thu, 08/14/2014 - 11:36 | 5092454 Amish Hacker
Amish Hacker's picture

But... but... but Hank Paulson told us if we didn't give him a gazillion dollars by the day after tomorrow we would have martial law in America and no financial system. Now it turns out we have martial law anyway (in Ferguson), and a thoroughly militarized civilian police force everywhere. And as for the financial system, what panicked Paulson and his cronies wasn't that we wouldn't have ANY financial system, we just wouldn't have THIS financial system.

Thu, 08/14/2014 - 13:09 | 5092970 Clowns on Acid
Clowns on Acid's picture

and Hank Paulson's net worth would be a lot closer to zero than it is now... 

Thu, 08/14/2014 - 11:40 | 5092474 Max Cynical
Max Cynical's picture

Any "systemically important financial institution (SIFI)" should immediately be dismantled.

No company should be so big that they can threaten instability.

Thu, 08/14/2014 - 14:08 | 5093252 Amish Hacker
Amish Hacker's picture

"Anything that's teetering deserves a good push."

Thu, 08/14/2014 - 11:42 | 5092492 fishwharf
fishwharf's picture

Robin Williams should not have made fun of the banksters.

Thu, 08/14/2014 - 12:32 | 5092768 financialrealist
financialrealist's picture

"Six years after the greatest financial crisis in modern history"  ...I have been wondering, what are they going to call the financial crisis when the next crisis makes the "great financial crisis" look like a day at Disney land. Technically, we are still in the financial crisis, we have not solved anything, nothing is fixed...we've just duct taped the economy with excessive funny money...but that charade is beginning to end

Thu, 08/14/2014 - 12:51 | 5092862 KnuckleDragger-X
KnuckleDragger-X's picture

Send lawyers guns and money....

 

https://www.youtube.com/watch?v=lP5Xv7QqXiM

Thu, 08/14/2014 - 12:53 | 5092878 NOTaREALmerican
NOTaREALmerican's picture

Only 110 billion?    That less than the cost of a month in the sandbox.  What's everybody pissed about?

Thu, 08/14/2014 - 13:04 | 5092940 JRobby
JRobby's picture

Give out the $$100 bil to consumers to spend

Jail all the banksters

There, fixed it!

 

Thu, 08/14/2014 - 15:23 | 5093151 ToNYC
ToNYC's picture

Thanks, To Your Money!

Banker sit free.

Arbeit You.

Thu, 08/14/2014 - 14:52 | 5093507 Rosie-Redknapp
Rosie-Redknapp's picture

Who needs prisons ?

Just short rope and long drop

Thu, 08/14/2014 - 20:13 | 5094981 Jack4952
Jack4952's picture

Hell, these major investment banks probably own majority control of the major "private prison" corporations within the U.S. !!!!

The irony of a Jamie Dimon or Lloyd Blankfein being imprisoned in a private prison owned by JP Morgan and Goldman-Sachs would be priceless!

Of course, either man could walk down Park Avenue in mid-day and shoot and kill some innocent man or woman with thousands of witnesses recording the event of video; and AT WORST they would pay a fine and perhaps spend 2 years in some "country-club" prison.

 

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