Deutsche Bank and Credit Suisse reach payment deals with US authorities on sub-prime scams

Tuesday, December 27th 2016 - 09:03 UTC

Full article 4 comments

Germany's Deutsche Bank announced it has agreed a US$7.2bn payment to US authorities over an investigation into mortgage-backed securities. The sum, which needs final approval, is far lower than the US$14bn the US had asked the bank to pay in September. The looming fine had caused concerns that a failure of the bank could pose a risk to the global financial system. Read full article

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chronic
The operations of those entities need to be wound done, ceased and assets liquidated.

Banks operates in a rarified space in the capitalistic stratosphere with their primary responsibility being the maintenance of their fiduciary responsibility to the customer and not their stockholders or board.

These and others haven't earned the right to operate at global scales.

When there is a demonstrable propensity for weakness in corporate governance of an entire sector the individual sizes of its constituent components need to be limited in order that any future self regulatory failings and subsequent enforcement actions no matter the breadth of their scope will have limited market impact.
Dec 27th, 2016 - 01:03 pm - Link - Report abuse -1
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DemonTree
So you want the government to regulate a maximum size (or market share?) for banks, which is much smaller than many are today. Presumably the government should forcibly break up the existing banks in order to achieve this.

And how would you convince the banks to treat their customers as their primary responsibility, rather than the shareholders? The customers do not get a vote on who runs the bank, and we have all been told for years that the only purpose of companies is to make money.

I guess this is the new right, who want more government regulation of business, less trade and higher tariffs.
Dec 27th, 2016 - 08:20 pm - Link - Report abuse -1
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Hepatia
The USG should have liquidated these Euro trash companies.
Jan 01st, 2017 - 04:21 am - Link - Report abuse -1
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:o))
The scams in the under-developed countries and also the scams in the developed countries? So corruption, after all, is a universally acceptable! So why bother to “investigate”?
Jan 01st, 2017 - 10:07 am - Link - Report abuse -1
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