This page has been archived and commenting is disabled.
Barclays Fined De Minimus $60 Million For "Corzining" Client Funds
In yet another round of penalties for the British bank, Sky News reports that Barclays will pay a GBP38 million ($62 million) fine for failing to segregate clients' funds correctly - i.e. "Corzining" its clients. The Financial Conduct Authority (FCA) will announce the small but record (higher than the $50 million fine for JPMorgan over its "corzining") penalty tomorrow. If you are a Barclays client, have no fear, for as they explain, "losses for Barclays’ clients were theoretical rather than actual."
Barclays will be hit by the latest in a string of financial penalties this week when the City regulator hands out a £38m fine for failing to ensure adequate protection for clients’ funds.
...
The punishment relates to the bank’s failure to segregate clients’ asset properly and maintain adequate records, the second occasion on which Barclays has been fined for such an offence after a £1.1m penalty three years ago.
The FCA is understood to have concluded that a much more severe penalty is necessary in order to serve as a deterrent to other firms which continue to demonstrate inadequate controls over clients’ assets.
Insiders said on Monday that the regulator’s announcement would make clear that losses for Barclays’ clients were theoretical rather than actual.
The penalty imposed on Barclays is higher than a £33m fine with which JP Morgan was hit in 2010 for similar misconduct.
...
One source said that the £38m figure included a 30% discount to reflect Barclays’ co-operation with the regulator.
Barclays and the FCA declined to comment.
* * *
Speechless... 2nd offsense...
Just a cost of doing business (and likely tax-deductible expense) - great news... and surely a deterrent in such vast amounts.
»
- 3167 reads
- Printer-friendly version
- Send to friend
- advertisements -
Free Jon Corzine!!!
MF Global took gold and silver from clients and paid in paper.
Barclays too now?
MF Global paid?
In the court settlement.
Only partial cash was paid - no return of the metal that was taken.
Theoretical losses ?
Is that like theoretically being pregnant ?
Glad to see that ex-Senator Corzine (D - but does it matter?) will live in infamy as a detrimental verb ('corzined' 'corzining'). He certainly suffered no other real consequences for stealing the money...so happy for our revolving door political class - they have no worries legal or financial worries about anything they do, or don't do...yay team.............
I don't know where that comment about gold and silver came from, but MF Global didn't pay. In silver, gold, or FRNs.
"And nobody goes to jail!" Battle cry of the 21st century TBTF.
And in others news, Jersey Island native, Martin Watson received his $30 million lottery payment from the U.S. Securities and Exchange Commission for buying the Barclays Whistleblower ticket.
When asked what he was going to do with the money, Watson said, "Buy gold !"
Free Kenneth Lay!!!
Oh Wait says he died in Jail.
Free Jeffrey Keith "Jeff" Skilling!!!
Oh wait he got a Defacto Pardon from President Barak Obama.
Skilling was convicted in 2006 on 19 counts, including 12 counts of securities fraud and one count of insider trading. Skilling's offenses added up to 36 points under the federal sentencing guidelines, which would have resulted in a sentence of 188 to 235 months, or 15 to 19 years. But the trial judge added a four-point "enhancement" because Skilling allegedly jeopardized the safety and soundness of a financial institution, namely the employee retirement plans. That four point enhancement meant that Skilling could be sentenced to far more time, 292 to 365 months, 24 to 30 years.
He had to get OUT... Because he helped design the Carbon Tax Plan. Obama still wants more taxes for you folks.
Someone needs to "Corzine" a few bankers.
yes, but, just their heads.
zirp can pay for anything when the medium of exchange is worthless.
and who receives these fines levied? it is all a joke.
All you muppets, your funds belong to us.
Theoretical? Bullshit, the digital credits went somewhere and were spent by someone...
yup, yuuuup
Few Ferrari cars and few yachts were purchased as a consequence
As you can see: Reserves (currency) CAN vanish into nothing, otherwise known as EXTINGUISHING
Most don't understand that. I see a need to extinguish around 50 trillion ASAP.
What has the REPO and reverse REPO "market" been doing lately?
Repo is small potato, about $5 trillion
Interest Rate Swaps are the gorilla, about $1.4 QUADRILLION, mostly OTC
It looks like this
http://www.federalreserve.gov/newsevents/speech/yellen20130104_figure4.g...
Extracted from Yellen's speech.
searching for collateral
Call your central bankers. they may have some bills, notes and bonds they could loan you to effect a Repo or RP
Whatever happended to Jerry Del Missier?
You'll hear a yellen if they corzine my FAFSA.
Exactly
Just trials of what is to happen soon
Bank Collapse and money vanishes into nothing, EXTINGUISHING OF EXCESS RESERVES
Let's keep an eye on Barclays.
Good candidate to be a black hole as sacrificial lamb
Actually they were at the cost of the U.S. and British taxpayer via their various QE and swaps/ repo schemes.
Same shit different day
How long before those imbeciles in Congress become "concerned" and "investigate" to gate keep the growing anger of the masses?
They've only gotta keep you dancing to their tune for just a little while longer
http://www.youtube.com/watch?v=-K_cuMDyHFc
https://www.youtube.com/watch?v=r9hSgs0ITI0
I'm enjoying my theoretical job, theoretically enjoying the robust economy, and look forward to increasing my theoretical consumer spending, and soon I will be also enjoying my theoretical retirement!
Fine them 38 Billion and throw the officers in jail for a year; see what happens then. But they will never do that because firms like Barclays spread OPM around to regulators and Pols so they can express "regret" this unfortunate incident happened. Until it happens again.
www.traderzoo.mobi
Dudes.
You put your money at one of these firms and they are going to steal it.
Is this not clear yet?
And no bankster EVER goes to jail.
Wash, rinse and repeat.
Whipping boys didn't work in the dark ages so why does anyone think they will work today?
This story illustrates a fundamental problem with regulators. The people who are always punished are those who are the victims, (shareholders) while those who are the perpetrators, (new class managers) get large raises.
A way to stop it? No, it is a way to make such crimes permanent. Is John Corzine in jail yet? The shareholders of MF global were wiped out though.
Here is a blog I wrote about this very problem a few months ago...
http://incapp.org/blog/?p=1795