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Citi Pays $3.5 Billion To Keep Its Employees Out Of Jail For Yet Another Quarter
Moments after Bank of America reported at today's Goldman financial conference that its Q4 trading revenues would be down both Q/Q and Y/Y, it was Citi's turn to warn that the current quarter will be the latest disaster in a long series of revenue disasters, with Q4 revenue said to drop 5% from a year ago, however, despite the drop, Citi would still see a "marginally profitable" quarter. Supposedly this means that a few hundred million shares of stock will have to be repurchased to give the optics that EPS is rising even as revenues continue to drop.
That was to be expected in a financially-engineered, centrally-planned world in which there is no institutional volume left, and all the rigged market levitation takes place on the back of negligible volumes by HFT algos, as well as stock buyback VWAP orders.
What, however, was a surprise, is that alongside the revenue warnings, Citi's CEO Corbat also announced yet another $2.7 billion in legal, related charges in 4Q, as well as another $800 million in repositioning expenses.
This simply means that for yet another quarter Citi will be charged with billions in recurring, non-one time "one-time, non-recurring" charges which will be dutifully added back to non-GAAP EPS by analysts at all the other banks (whose criminal employers are now engaged in the same racket with the US government).
But what it really means is that it cost Citi some $3.5 billion to keep its employees out of jail for yet another 3 months.
Confused? Then please re-read "$178 Billion In Government Kickbacks: Meet The World's Biggest Organized Crime Syndicate" where we explained a few very simple things:
Who, in simple numeric terms, is the world's biggest organized crime syndicate?
The answer, courtesy of a new report by the Boston Consulting Group,
which shows the transfer of some $178 billion in litigation costs into
the pockets of government appartchiks in the past 6 years, is clear.
Banks.
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Used to be firms invested in physical assets
Now firms invest in lawyering activities
"Whatever it takes..."
the new banking normal will be who can generate the most illicit revenue to keep from being indicted into oblivion, traditional commercial/investment banking be damned!
All we can hope for is mass banker "suicides"
A bargain at twice the price. Spend other people's money to keep yourself out of jail? No-brainer decision.
I wonder to whom they are paying all this fines cause I as a taxpayer for sure do not get cent of it
Remember, a billion is a rounding error in the gubmints mind, and I am increasingly thinking the TBTF banksters have the same mindset.
http://www.dailymail.co.uk/news/article-2866973/Banker-dies-impaled-rail...
A woman, in her thirties, added: 'Even my five-year-old son saw and said "mummy, there's a dead banker." I think he's okay despite what he saw...
People with too little conscience to be lawyers become bankers. The assholes need to be jailed like the punks they are, with little Jamie Dimon the first to go.
The banks must believe that there is no profit in running an honest business.
Does this mean that ALL bankers are going to hell?
bankers investing in politicans! It is pure genius...these fines are a complete slush fund!
keeping execs out of prison for committing banking fraud is just "part of the cost of doing business" in the new normal. its not like C actually did anything NON-criminal to earn that money. so, they give back some of their ill-gotten gains.
Citi better start stashing some of that 6000 year bubblicious gold in secret locations before they go belly up..... again.
It's only electronic invisi-digits created out of nothing by one government cartel, given to Citi, and then handed back to a different branch of said government.
But, usefully, it helps to perpetuate the myth that US fiat currency has some value of some sort....I guess staying out of prison is valuable, so there is that.
We defrauded some folks....
ALL the folks and....each other!
$2.7 Billion legal! If you put a banker on all fours with an attorney mounting him for each dollar, it would wrap around the world 1.5 times!
So, 6000 years bubble ehhh?? You Willem dickhole.
They seem to have been right about the defend USDJPY from 12/5/14. This $3,500,000,000 plus the 275,000,000 lost to the China Port Authority last week and it doesn't seem like a good year for the Citi bonus pool.
How long can this last?
In theory? Forever. In reality? Forever.
Historically, it can't last "forever" though. The "this time it's different" meme has pretty much been worn out and the muppets are growing increasingly cautious and cynical. When the system crashes, it will be a totally uncontrolled crash rather than a partially uncontrolled crash. I wonder how the banksters will do against large mobs of rabid muppets carrying rops, pitchforks, and torches... not very well I fear...
Define "Forever".
AND here is a laugh...actually on topic! Banksters and their lies are legion.
http://www.americanbanker.com/bankthink/to-restore-trust-in-banks-build-...
The $3.5 billion is chump change for Citi. Cost of doing criminal business.
Eric Holder said their too big to prosecute.
The department of Just-Us would even look the other way with murder with regards to these big banksters.
The regime is harvesting the legal claims as a new revenue stream, that was their plan from the inauguration, which is why they wanted to keep all the TBTF banks going full-throttle.
Try reaching over the counter of the local liqueur store and taking a ten spot from the register and see how you are treated by our government... as opposed to how you are treated if your are politically favored and steal hundreds of millions of dollars from the American people and shareholders.
As far as I am concerned, these TBTF scandals are a reflection of the MF Global scandal. Which by the way, no one has anyone gone to jail over? Or is Jon Corzine still partying on the beach in Florida with his ill gotten gains?
no corzine is fund raising for Hillary....SEC. OF TREASURY is a lock for Corzine...and bill as Sec of State. The secret service will be arranging his parties!
Political payoffs are going to be costly. Where are all these bilions in slush going? Holders bank account? Deferred income for Comrade Obama? The DNC's Christmas party...wait they don't believe in Christmas...more like pagan devil worship meeting held on DEC 25?
First our federal government was financed by tariffs. It wasn't enough.
They added an unconstitutional income tax. It wasn't enough.
They've inflated away the value of the currency. It wasn't enough.
They added fees for everything they do. It wasn't enough.
Now they look the other way as those they regulate break the laws. Then they come back and fine them for doing so.
What do you suppose they'll try next?
They'll force private retirement accounts to invest in government debt. And pension funds. And whatever other pools of savings they can find.
Then they'll just have banks simply steal private savings accounts. That's called "bail-in", right? Except next time most of the cash will flow into the government coffers.
Then they'll create a federal property tax, or something similar.
Hey, I'm gonna stop here... one of them might be reading this.
A cheaper solution for us (the host) might be to let the parasites take 100% of our blood right now (rather than slowly bleed us). The collapse and reset would quickly follow. Integrating the dollars out of our pockets, quick collapse would be a less costly, less painful and a quicker, more cleansing, solution to this parasitic problem we have.
Citi sucks balls. Goldman has "get out of jail free" cards, LOL.