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UBS Gets Probation For Rigging $5 Trillion-A-Day FX Market
UBS was “confounded” last week when the Justice Department decided to void a 2012 agreement under which the bank would escape prosecution for its role in manipulating the world’s most important benchmark rate in exchange for ratting out its FX rigging co-conspirators.
As a reminder, the DoJ is set to extract guilty pleas from a number of TBTF bank logos sometime in the supposedly near future (reportedly later today). The settlements were supposed to have been announced last week but because that didn’t give banks enough time to negotiate all of the fine print and SEC waivers that will serve to strip the agreements of any and all meaning, the announcements had to be postponed.
As we’ve outlined on several occasions this month, JP Morgan, Citi, Barclays, and RBS will almost certainly be allowed to skirt punishments that should by law accompany their guilty pleas including provisions that make it more cumbersome to raise capital and limit participation in private placements. Those inconveniences, the banks say, would pose a systemic risk and so must be avoided at all costs if they agree to admit to rigging forex markets.
For UBS, whose assistance was supposedly key to the FX rigging investigation, the squealing rat reputation isn’t completely for naught after all because as you can see from the below, the bank will pay just $342 million to the Fed for rigging FX markets “engaging in unsound business practices” (and nothing to the DoJ), $203 million to the Justice Department in connection with rigging LIBOR, and plead guilty to one count of wire fraud.
Via WSJ:
UBS will plead guilty to wire fraud and pay a fresh $203 million fine related to the Libor case. In addition, the bank will pay a $342 million penalty to the U.S. Federal Reserve, for “engaging in unsound business practices” related to its foreign-exchange business.
The Wall Street Journal previously reported that U.S. prosecutors took into account UBS’s promise not to break the law in its 2012 nonprosecution agreement for Libor, and believed misconduct by bank’s employees trading in foreign currencies violated those terms.
So while UBS may still be confused as to why rigging forex markets counts as a violation of an agreement that originally came about because the bank manipulated LIBOR with the same other banks with which it conspired on the currency shenanigans, one thing is clear: $545 million is a great deal.
Here’s Reuters:
The Swiss bank's payment is part of what is expected to be a combined $5 billion settlement by five of the world's biggest banks with U.S. and British authorities over alleged manipulation of the $5-trillion-a-day forex market…
The bank said the new fines, which were much lower than expected, would not affect its earnings. The bank's shares rose over 2 percent in early trade in a relief rally.
“It couldn’t have been better ... Most of it was already priced in but something around $1 billion was expected, including the Libor fee,” Andreas Brun, an analyst with Zuercher Kantonalbank, said.
Just in case the above isn’t clear enough…
* * *
And the punchline:
The bank is now under a three year "probation" period with the DOJ.
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Paying the vig
crony capitalism socialism at it's finest...
Big news from a pro on the subject .....Soros sees risk of another world war
http://www.marketwatch.com/story/soros-sees-risk-of-another-world-war-20...
We need more Bin Ladens... (American Bin Ladens), forget the DOJ, we need a The People's Justice Department.... :D
Pure Corporatism.
Pleading guilty to International Wire Fraud would put an ordinary person behind bars for years and fuck their whole life afterwards.
Not surprised. When will any of these bankers go to jail?
bankers dont put bankers in jail.........
the gov is the bank and the bank is the gov........
"When will any of these bankers go to jail?"
When will we see them hanging headless from spikes like their paid ISIS shills do to others in Syria?
Out fucking outrageous.
Different rules for different folks. It is a race to become part of the protected class, the Too Important To Fail. If you are a belligerent biker at a scene where cops kill your friends, you all can be charged with murder. But if you are a cop and kill someone because they fail to obey, you might lose a weeks pay.
You are either part of the protected class or you are the little people who's responsibility is to work and pay and obey.
Harley biker revenge is a bitch.
OK I'm thinkin biker is a poor choice for sympathetic comparison. Those fuckers are vicious. Now busting someone because they are feeding the poor or siezing a family of 10 kids and putting in foster carea and the parents in jail for home schooling is were the rubber meets the road. I'd like to see some of those goverment folk strung up as it were.
$342 million paid to the printer...
Not paid to compensate anyone, just paid back to the money printer.
They are all criminal racketerring enterprises and should be RICO'd
Lots of reasons to be pissed but you bring up a good point...where does this money go? Does it go to general revenue, or does it go into specific "budgets" much like law enforcement keeps their ill gotten gains from seizures?
It's just treated as a pile of chips on a poker table.
.
Or numbers on a fridge.
The fine goes to the Fed! It should go to the people who got screwed!
+1 Thanks for making my point Banzai and Red Pill. Is that the skim, commission, fee to the FED, instead of redistribution to frauded investors....!? WTF.
My most simplified rant is this:
The FED is owned not by the US gov'y but by the TBTF banks.
Why the fuck are we allowing them to pay themselves the fines levied for their crimes.
I am missing something here?
Next: Putting aside the lack of jail time, why aren't the perps banned forever from employment by a bank? They just wind up playing musical TBTF chairs and rewriting their resumes.
Move On folks...
Stick to your pictures .... you're breaking the enchantment ! LOL
pictures and logic go hand in hand and damn the enchantment of "hidden hand"...
Dirty little grasping manicured hands on every criminal banker. They piss on your leg and laugh in your face. Jail ? Why that's for the little people...
The Dept of Justus just recently slapped the hands of four Cancer organizations for ripping off the donations. One of them was a childrens fund. From what I gather they had their hands slapped and some told they could not participate in these types of scams.No jail time that I am aware of.
It's as if anyone who steals "BIG" is ok while the little thieves go to jail. I guess soon they'll have to be fair and let them all go free.
What the hells going on! Chicago mobster Al Capone today would have had a tiny fine, slapped on the wrist and turned loose. He lived in the wrong time.
It's a savings account for UBS. @ the FED so they make em save money for a rainy day. You know director retirement. Bilderberg junket. Stuff that are a benefit to us all. Maybe sp Bilderberg wrong but oh well. Anyway important stuff. I mean these guys trim the homes and offices in gold leaf. That stuff aint cheap I dont care what anyone says about the price of gold. So they prob buy the stuff in bulk so everyone has got to chip into the pot. The FED is there club house. al la spanky and the gang.
I have yet to receive my check.
Trade licence of any corporation is issued as a condition to follow the law.
But only in the banana republic of US, is a violation of law as well as cheating to make money by a corporation treated as lightly.
Writing insults on Facebook will probably get you a longer jail time. Feeding the homeless too! Kicking a pet...well...you go to jail for life....shooting a black man, especially unarmed, is now considered a well respected sport ...while cheating the whole nation of consumers.....that's another thing altogether.
Is US a real country or a game of Monopoly?
With fake money...get out of jail cards .... the bank can 'never go broke' and can print as much as it wants.....
Dubaibanker
Actually banks, including Central Banks, can go broke; but first they break the country.
Hanging for treason is the only remedy.
Wow, I am suprised they were that "tough" on them. Must be trying to set an example for other neerdowells!
Complete fucking joke!
Simply inflation in the participation fees.
take a joy ride get 5 years in jail...manipuate illegally trillions get probation.
Sounds like Europe better start praying six times a day!
Now, if someone really cared enough to actually do something about any of this. I, like most of us here are relegated to the pathetic role of bitchez.
Remember Oppose Wall Street. I somehow couldn't be bothered.
If a group of people on their own decided to punish criminals like these they would be called a 'mob'.
So, what do call the trash in the Dept of Justus?
I don't know why you're all so mad...life is great... Kim Kardashian has a big booty and some footballs games are on tonight.
How come if I were to plead guilty to wire fraud, I go to jail? When is UBS going to jail?
Whiskey Tango Foxtrot??!
and corzine gets his advisor's pay, the playbook after enron, ever wonder why K lay and J skilling, got jail? never happen today.
Dean Wormer: "Delta (UBS), I am putting you on double secret probation."
And the futures trader Nav stays in jail, bail refused because he's a flight risk.
if you're small and mess with the Federal government you're in a whole load of shit. They took all Kim Dotcom's money BEFORE any trial.
Got to hand it to them however, because their propaganda is good at tricking the majority 'we're the good guys, trust us, look we even shed a tear when they play America the Beautiful'.
....and who is going to jail for these crimes? Nobody. It's once again the innocent shareholders taking the hit for the corruption, while the "team" remains intact. Nothing to see here, move along.
Banks mimic Keynesian state .... and get punished for it ?
TBTF banks don't mimic the Keynesian state. They are the Keynesian state. After 7 years of ZIRP, NIRP and buying all bonds do you see any change in aggregate demand in the economy? Hell no. But it sure has been good for bankers and their ilk.
Reminds me of the movie Mississippi Burning.
The first hooded white knights of black man's lynch furor as local back-lash in the movie centered around a federal police investigation into the disappearance of three young "marchers for freedom", were declared guilty by the court for "conspiracy to harm free citizens", then sentenced to 5 years in prison--with suspended sentences.
Justice was "done" but never "executed".
From raycisss days of the 60s to lawless days of the 2010s what has changed ?
Justice is still a "kept woman" in chains !
Outstanding! Managed to get rayscism in the discussion.
More Dindu Nuffins?
Most criminals operate at night or at least try to hide their faces.
These criminal cocksuckers operate in broad daylight in full view of the DOJ and SEC.
Must be nice.
Did Jamie D wear his Presidential cufflinks when he signed his "penalty" check?
Fraud is a wonderful thing for the connected!
Sometimes you just have to thank Almighty God for the greater judgment.
Sadly, many if not most, will be spending eternity with the very people they hated such as the bankers and politicians due to disobeying the command from the "Creator in Chief" to repent and believe in the person and work of Jesus on THEIR behalf. Breaks my heart to witness the self-destruction of so many as they earn their place in hell, for the wages ( a thing earned) of sin is eternal death. God sends no one to hell; they earn it, but He does put many barriers in their way to prevent it, but people love the darkness because their deeds are evil and that continually and because it is darkness, they are blind to it.
Tough luck, you fundie prots.
Catholics can buy a free pass. An eschatological "Get out of jail Free Card".
Nanner nanner.
The zio banking syndicate operates above all laws and murders anyone who gets in their way.
Those fuckers, we knew the RIG was on.
How can the Dept of Justus hold a straight face. These banksters steal billions/trillions and split it with government trash called fines. They don't even try to hide it any longer. Each theft emboldens them to do more.
We laugh when China uses capitol punishment and worse, we consider their economy and banks rigged. What a joke. It's as if we admire crooks so long as they're our crooks.
Only criminal bankers admire criminal bankers. Everyone else despises them. Enterprise is dead, Financialism reigns... until it doesn't.
Too Big to Jail. How about a few pennies on the dollar? All tax deductible.
Now know why TPP is such an ass raping of Joe Sixpack and Sally Housecoat
Worst. President. Ever.
I'm glad I'm still not used to seeing such fucking outrages, even after all those years and my choosing the red pill.
No one should get used to that. Those sons of bitches would count on everyone not giving a fuck anymore. It is clear the answer to "how much is too much" is "never enough".
Bastards.
Stealing hundreds of billions of dollars, possibly trillions, evidently does not count as a systemic risk. Putting the criminals in jail does. Do they really think we're that fucking stupid? Maybe they just don't give a shit what we think.
They think we can't remember terminology for Racketeering and Corruption.
- Revolving Doors to Industry
- Nepotism
- Regulation Capture
- Government Capture
- Financial and other Conflict of Interest
- Race to the Bottom
- Gresham's Law, Bad money Chases out Good Money
- Accounting Control Fraud
- System Growth, Proliferation of Rules, Laws, Legislation all lead down the road of complexity, Chaos, Risk... and then they only serve the Wealthy, the Privileged, the Highly Educated, those placed highly in Government or business, or those that serve the Industries of Banking, taxes, Law, Accounting, Finance, Trade, International Trade, and Government
Solutions to our complex court system, liability laws, complex laws and regulations are to Simplify, Streamline, and Standardize.
Plus we have 100 years of recent history which has explored all these mentioned kinds of corruption and conflict of interest.
Getting real warm there, Bub.