Public Confused Why World's Biggest Banks Admitting Criminal Fraud, Leads To Public Yawns

Tyler Durden's picture

It was about two years ago when we summarized all the known and confirmed rigged markets.

  • Libor - interest rates (link)
  • ISDAfix - swaps (link)
  • Platts - oil prices (link)
  • WM/Reuters - FX (link)
  • High-Frequency Trading - equities (link)

Since then things have gone from bad to worse for believers in fair and efficient markets, with not only countless more banks now admitting they rigged Libor and FX, not to mention gold (yes gold too was manipulated as impossible as it sounds) and even the CFTC finally figured out just how spoofers manipulate the price of both stock indices and gold, but that biggest master manipulator of all, the world's central banks, unleashed a record liquidity blitz into world markets with 2015 set to be the year in which CBs are set to monetize all net issuance.

It all culminated with yesterday's settlement in which five of the world's biggest banks, including JPM, Citi and Barclays, agreed to plead guilty in a currency-rigging probe.

And, to Bloomberg's dismay, the public yawned.

Bloomberg's amazement continues:

Barely more than a year ago, criminal charges against major U.S. banks were considered unthinkable, with lawyers and analysts viewing felony convictions as a death sentence and a threat to the financial system. Now, by granting waivers allowing lenders to keep operating even after a felony plea, the government has managed to punish firms while protecting them from fatal consequences.

Others, including those who work in the industry, are just as amazed:

This is the first time you had Citigroup, JPMorgan or any U.S. bank plead guilty essentially to criminal conduct -- this is a bad day for American finance,” Mike Mayo, an analyst at CLSA Ltd., said in a televised interview with Bloomberg. “Having said that, this is more backward-looking than forward-looking.”

The market, however, was delighted with the stocks of Barclays, UBS and RBS rising.

“It’s a bit weird, isn’t it?” Christopher Wheeler, a London-based analyst at Atlantic Equities LLP, said in a telephone interview. “$5.8 billion and yet everybody is shrugging their shoulders.”

And while it is now official that stocks are rewarded for crimes, why is it that even the public no longer cares?

For all the muted response to Wednesday’s news, Donaldson Capital Management LLC’s Greg Donaldson expressed concern that criminal charges may now become routine. “Once you cross that line and admit you’ve done something bad, you open up Pandora’s box,” said Donaldson, chairman of the Evansville, Indiana-based firm that manages about $1.1 billion. “This settlement just moved the goal post.”

 

If convictions become too commonplace, the government may have to pursue even tougher penalties.

Which is the punchline: the government will not pursue anything that truly hurts banks. Ever again.

Because in an age of deferred prosecutions and "probations" for criminal conduct even for recidivist banks such as UBS, what the public has realized is that in his desperate scramble to appear tough on banks and to prosecute them "criminally", the president has come to a back room arrangement with the banks in which they agree to pay slightly greater fines under an umbrella of criminal conduct, which thanks to SEC waivers to conduct "business as usual", achieves absolutely nothing.

Oops, did we say the banks pay fines? We meant their shareholders.

As for how serious the "criminal" charges are, we are delighted to summarize just how many bankers are being arrested, handcuffed and carted to prison.

0.

And with that we hope to have explained why not even the public is dumb enough any more to fall for the whole "criminal punishment for the banks" bullshit.

Because by now everyone knows who really calls the shots in the US government.

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junction's picture

Banksters rule, bitchez!

VinceFostersGhost's picture

 

 

When is the next episode of Dancing with the Stars on?

Mr. Magoo's picture

Dancing with the stars is so yesterday, when is the next episode of the voice

Dame Ednas Possum's picture

'It is easier to fool people than to convince them they have been fooled' Mark Twain.

'You can turn this crap off. Change the channel and pass me another beer...the game's about to start.' Joe Public.

jaap's picture

I do need a double dosis of chem trail and an extra cup of fluoridated water today.

MonetaryApostate's picture

Banking Theft = Government Profit....  The fines will go to whom again?  Oh that's right NOT YOU BROKE JOKES!

mtl4's picture

Best will be when the banks have nothing left but to HFT each other........raise your hand if you think liquidity will be an issue later.

AIIB's picture
AIIB (not verified) mtl4 May 21, 2015 12:29 PM

It's 'anti-semitic' to prosecute a 'TOO JOO 2 FAIL" bank.

MonetaryApostate's picture

The best way to protect your slaves, I mean wokers, is to make it against the law to condemn them in any way...

Then when you FINALLY realize who truly runs the world, everything begins to make sense....  L @ N ~ D @ N

Squid-puppets a-go-go's picture

this is just the efficient allocation of capital, isnt it?

you have a bank that runs the govt,  will always make heaps more $ in the criminal enterprise than it will ever be fined, and will never be stopped from rigging markets. Thus capital will flow towards it like sewerage to the ganges.

what we need, however, is a more efficient allocation of pitchforks

freewolf7's picture

The programming is working.

We're not hungry enough yet, and it's tolerable. That was a really important word for me to learn.

Dame Ednas Possum's picture

It has been statistically demonstrated that once people spend more than 40% of their disposable income on feeding themselves...social unrest ensues.

Imagine once the EBT's don't work and no amount of clown bucks buys a McShit burger with fries and a coke?

Payne's picture

Most of the public already is aware that the Banksters are criminals.  Having it be confirmed is old news to most.

SWRichmond's picture

Most of the public already is aware that the Banksters are criminals.  Having it be confirmed is old news to most.

+1.  We already know this.  We are already past the point of no return, the Rubicon was crossed a long time ago.  Too busy prepping for our own survival to react to old news.  "The banksters are criminals.  Film at eleven."  Ho hum.

greyghost's picture

payne and swrichmond +2. this article claims the public is not concerned and yet there is comment after comment from nothing but the crooks thru out the reading. the only ones who are amazed are the financial wizards from the banks, hedge funds and financial whores in the media. "FUCK WE GOT AWAY WITH IT"!!!!!!!! that is what the article says......bloomberg......god help us.

Fun Facts's picture

The idiocracy will allow themselves to be abused in every way possible by the New Bolsheviks who hate america almost as much as they hate the US constitution.

The zio media will continue to cheerlead for them until the former America is a more distant memory than it already is.

WTFRLY's picture

It's like when your team is down by 4 touchdowns, you are pretty much playing for pride though the game is over.

ZH Snob's picture

how can the Public be confused by its own apathy?  maybe we think it is someone else yawning.  no, it is us.  no more watergate or 60 minutes shame.  the broad path has been widened and beautifully paved.  it's been lined with flowers and trees, but if you can see far enough you will notice it leads to smoke and fire.  listen close enough and you will hear the Public down that way screaming in indignation about how they're not to blame.

Perimetr's picture

Too stupid to live much longer

jerry_theking_lawler's picture

The penalty must outweight the reward....or it will continue. This is the simpliest definition of punishment.

astoriajoe's picture

Unless one of those guys pictured ends up in a 'Fuck-me-in-the-ass prison' cell, its just another day at the salt mines.

Crash Overide's picture

Reap, sow...

 

Soon bitchez. :)

SheepDog-One's picture

I'm out here reporting from 'in the public' and I can assure you it's nothin but 'tards.

replaceme's picture

Relax,scrote - lots of 'tards lead kick ass lives. My wife's a 'tard, and she's a pilot.

Dame Ednas Possum's picture

fascinating, nut sack...that people obviously capable of making intelligent decisions apparently also make bad ones, and on important matters too.

First There Is A Mountain's picture

HOLY FUCKING SHIT!!!! A PILOT??? That's definitely as "KICK ASS" as it gets......

Sages wife's picture

"Sages wife here, I'm out in the street asking common folks about the recent banking...BEEP BEEP...HONK..THUD!...Arghhhhhhh..my fucking duodrnum!"

Dr. Engali's picture

Sorrry, what were you talking about?  I was too busy catching up on Survivor to pay attention to what you were saying.

Kirk2NCC1701's picture

Speaking of 'Rigged'...

Man-jaw* Rumer Willis won because her parents' (Demi Moore and Bruce Willis) agents and their army of connections were out-Tweeting everyone else for votes. 

 

* If you were to replace her man-jaw with a feminine one, she would be quite attractive.  It's her only feature that distorts her face.  And I'll bet you it's too complicated and risky to perform Reconstructive Surgery, to take the chance. 

This is it's picture

Why? Because it's profitable.

Duh.

 

Now, back to hammer time! *grab some popcorn*

Kobe Beef's picture

Exactly. Get a trillion each under the table from the Fed, then pay a billion back in "fines". Until the 12 Regional Banks burn it's just business as usual, and the government is part of the racket.

Funny, there's another article on the Hedge today talking about Martial Law. As opposed to the Admiralty Law we got now? Hell, I'd take the Green Berets administering justice to the traitors in high places anyday. But, we all know it's going to come down to do-it-yourself justice anyway.

greyghost's picture

careful kobe beef......don't confuse the the readers with such important issue as "Admiralty Law". why some poster actually thinks walmart is a private company. kobe, since you brought it up....are you aware that the laws pertaining to "common law" and those rights of individuals under said common law are residing at 1 bowling green new york, new york 10004. that is currently the U.S. Customs House in new york. many many years ago when the "special people " thought they needed to do away with "common law" in the U.S. they were set to do away with any court rulings...etc that were brought before any courts in the U.S. however the very very "special people" from the business community tapped the very very "special people" the politicians and academics on the shoulder and said they couldn't "completely" do away with said common law. It seems that all trade laws are based on "Admiralty Law" and all "Admiralty Law" is based on "Common Law". Opps what do they do with it......hide it at the customs house in new york city of course. where it resides to this day and only used in trade and treaties when needed.......not for the common man.

Kobe Beef's picture

Thanks for the heads up. Gonna look into that. Got any names or cases to start the search?

replaceme's picture

That picture screams out for a meteor strike.

buzzsaw99's picture

the doj is a criminal protection racket

ebworthen's picture

They're no different than a Judge who takes cash under the table from Mafia Dons to stay out of jail.

"Your honor, will $100K do?".  "Yes, we'll hold a hearing but no charges will be pressed.  How are the Wife and kids Guido?"

Immortal Flatulence's picture

dept of justification. You (TBTF) commit crimes, we'll continue to essentially look the other way which literally justifies you. Carry on. 

Deus Irate's picture

It should read: "The Media yawned" and quite by design. The public is simply burned out and has lost it's will to live.

illyia's picture

And, decided that if you can't beat them then join them.

Obviously 'you can't beat them.'

Less obvious: The public will never join them.

As a nation, we are all corrupt now...

jerry_theking_lawler's picture

Nope. Think they know there is no stopping them, so the one's that care are busy sharpening the guillotine blades....

Bahamas's picture

Most of the people didn't even yawn as they're outright asleep

El Hosel's picture

Government, Corporate and Market Fraud is Public enemy number one, one A, and one B.... Bitchez . Too bad the public has been nuetered beyond any recognition of our once "Republic".

And Justice for all... Buried and forgotten in the ( far distant ) rubble.

Chuck Knoblauch's picture

I hope you believe that.

Mr. Magoo's picture

Obama phones, Beer, cigarettes, sports, lottery tickets and Doritos, the new American pastime

ebworthen's picture

Yawning because you'd have to be brain dead to not realize the new Middle Ages are here.

Lords and Ladies, castles and fiefdoms, serfs toiling in the fields and beat down if they speak up.

The Bush's and Clinton's, the monarchies of the New World.  Wall Street the new Venice.  All hail Caesar!

two hoots's picture

One all speech, charm, glitter and manipulation, the other actually moving the chess players.  Both worthy of watching.

Ghordius's picture

Feudalism was based on "Might Makes Right"
Neo-Feudalism? Is based on "Money Makes Right"

LawsofPhysics's picture

In that case, you better make damn sure that those paper promises are still accepted.

good luck with that.