Search Results for: "money laundering"

Credit Suisse admits to one felony for aiding tax evasion.

3 Comments / Fraud, Other stuff /

After unspecified decades of deliberately helping unnumbered thousands of customers evade income taxes, on Monday Credit Suisse Group plead guilty to one felony charge of aiding tax evasion. They will pay a fine of $2.5 billion.

I think this may be the end of “too big to jail.” Perhaps.

I’ll take a look at the modest size of the fine in relation to earnings in the next post.

Full service money laundering

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Credit Suisse admits to one felony for aiding tax evasion.Read More »

Credit Suisse admits to one felony for aiding tax evasion. Read More »

Why I’m scratching my head over the JP Morgan settlement for not reporting the Madoff fraud

2 Comments / Other stuff /

I’m still trying to sort out the $2.7B settlement.

My initial hesitation when reading several pages of the deferred prosecution agreement and other news yesterday moved to full head scratching last night when I read the Wall Street Journal’s editorial, Another Madoff Swindle – The same government that ignored the fraud gets a cut of the recovery.  I’ve since read most of the DPA.

The editorial takes exception to the feds getting a $350M cut of the settlement, as if a reward is deserved. Put another way, that is a 17% commission { $350M / ( $1,700M + $350M ) } on the recovery.

Why does the editorial board use the words “extract”, “swindle” (twice!), and “money-grab”? Here’s a few reasons: …

Why I’m scratching my head over the JP Morgan settlement for not reporting the Madoff fraudRead More »

Why I’m scratching my head over the JP Morgan settlement for not reporting the Madoff fraud Read More »

Q: What’s $2.6B? A: Morgan’s current tab for settling up on failure to file suspicious activity reports on Madoff scheme

1 Comment / Other stuff /

Currently looks like J.P. Morgan will be wiring out $2.6B in the next few days to settle charges of having an insufficient anti-money laundering program and not filing suspicious activity reports on the Madoff fraud.

The Wall Street Journal’s tabulation as J.P. Morgan Settles Its Madoff Tab: …

Q: What’s $2.6B? A: Morgan’s current tab for settling up on failure to file suspicious activity reports on Madoff schemeRead More »

Q: What’s $2.6B? A: Morgan’s current tab for settling up on failure to file suspicious activity reports on Madoff scheme Read More »

Another multibillion settlement for JP Morgan – this time for not filing suspicious activity reports on Madoff accounts

1 Comment / Other stuff /

JP Morgan signed a deferred prosecution agreement with the Department of Justice for not reporting suspicions raised by Morgan’s own staff that the trading in Madoff’s accounts was suspicious.

The Wall Street Journal reports: J.P. Morgan to Pay $1.7 Billion to Victims of Madoff Fraud.

The DPA, which you can read here, says …

Another multibillion settlement for JP Morgan – this time for not filing suspicious activity reports on Madoff accountsRead More »

Another multibillion settlement for JP Morgan – this time for not filing suspicious activity reports on Madoff accounts Read More »

Deloitte penalized for anti-money-laundering work done for Standard Chartered

Leave a Comment / Accounting /

Deloitte Financial Advisory Services agreed to a $10M fine from the N.Y. Department of Financial Services and a one year ban on new work for state chartered banks.

The consent agreement between the state regulators and Deloitte Financial Advisory Services can be found here.

What’s the problem?

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Deloitte penalized for anti-money-laundering work done for Standard CharteredRead More »

Deloitte penalized for anti-money-laundering work done for Standard Chartered Read More »

Does too big to fail, too big to punish, and too big to manage mean you are too big?

Leave a Comment / Other stuff /

George F. Will suggests the answer to the question is “yes”: When banks get too big to fail, they are too dangerous to leave intact

One of the U.S. senators on the left end of the political spectrum thinks it is time to break up the too-big-to-fail banks.

Look at the concentration of assets in the TBTF range and the long history of TBTF: …

Does too big to fail, too big to punish, and too big to manage mean you are too big?Read More »

Does too big to fail, too big to punish, and too big to manage mean you are too big? Read More »

Discussions of banking issues on my other blog

Leave a Comment / Other stuff /

My posts on bad behavior by big banks has been split between here and my other blog, Nonprofit Update.

I’ll post future discussions here, Attestation Update.

For reference, my posts on money laundering at the other blog are here:

Discussions of banking issues on my other blog Read More »

Settlement of $1.5B possible for UBS over allegedly playing games with LIBOR. And maybe some individual criminal indictments.

Leave a Comment / Other stuff /

The Wall Street Journal reports $1.5B is the expectation for a settlement next week.  See their article A Shadow Over Banks as UBS Nears Deal.

(Behind paywall, so either grab yesterday’s paper quick or get an online subscription. Or do both.)

Criminal charges?

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Settlement of $1.5B possible for UBS over allegedly playing games with LIBOR. And maybe some individual criminal indictments.Read More »

Settlement of $1.5B possible for UBS over allegedly playing games with LIBOR. And maybe some individual criminal indictments. Read More »

On the other hand, you cannot say banks are underregulated

Leave a Comment / Pondering /

Cooking Libor. Money laundering. What are the big banks doing?

Where are the regulators?

I’ve been scratching my head about some of the things banks have been doing lately, such as manipulating Libor. Other people have long been blaming banks and other financiers as the primary cause of the 2008 financial crisis. I am definitely not in that camp, but that’s a topic for another day and a dozen posts. HSBC is setting a $1.5 billion reserve for possible fines related to money laundering, since they apparently allowed $7 billion to move from Mexico to the US in violation of US law.

In the midst of that head scratching, many people are wondering, where were the regulators? In the Libor issue at least, they were well aware of what was going on.

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On the other hand, you cannot say banks are underregulatedRead More »

On the other hand, you cannot say banks are underregulated Read More »