Little to NO Sympathy for Big Banks – New York Times

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NYT no sympathyIt’s no fun to be a banker these days. It is not just the increased regulation. It’s the lack of trust.

“At what point does this stop?” asked Gary Lynch, the former director of enforcement for the Securities and Exchange Commission who has gone on to jobs with many leading Wall Street firms and is now global general counsel at Bank of America.

He was referring to the escalation in penalties being levied on banks, culminating in the $13 billion JPMorgan Chase was forced to pay for a series of transgressions. Continue reading

Criminal Action Is Expected for JPMorgan in Madoff Case

New York Times posted by JESSICA SILVER-GREENBERG AND BEN PROTESS

Madoff JPMorganJPMorgan Chase and federal authorities are nearing settlements over the bank’s ties to Bernard L. Madoff, striking tentative deals that would involve roughly $2 billion in penalties and a rare criminal action. The government will use a sizable portion of the money to compensate Mr. Madoff’s victims.

The settlements, which are coming together on the anniversary of Mr. Madoff’s arrest at his Manhattan penthouse five years ago on Wednesday, would fault the bank for turning a blind eye to his huge Ponzi scheme, according to people briefed on the case who were not authorized to speak publicly. Continue reading

Libor Lies Revealed in Rigging of $300 Trillion Benchmark

the Lie in LIBORNo – we’re not making this up.

According to Bloomberg By Liam Vaughan & Gavin Finch – Jan 28, 2013: “The benchmark rate for more than $300 trillion of contracts was based on honesty. New evidence in banking’s biggest scandal shows traders took it as a license to cheat.” Graphic: Bloomberg Markets Continue reading

Weekend Reading: Banks Worried They Might Be Next

NYTimes logo

One of the best week-in-review posts!

BY ERIC OWLES

dimon wallAfter JPMorgan Chase’s $13 billion mortgage settlement emerged this week, Jamie Dimon held a conference call with analysts. “It could’ve been somebody else,” the bank’s chief executive said. Who is next on the list?

In a news analysis in The New York Times, Peter Eavis wrote that “there were plenty of other big subprime players — Countrywide Financial, Merrill Lynch and even foreign institutions like Deutsche Bank and Royal Bank of Scotland among them.” Continue reading