Corporate Criminals 5/21/2015

Corporate Criminals

 

This edition of Corporate Criminals begins with some players who’ve already been in trouble plenty of times, which leads to the question: Why aren’t Boards and shareholders throwing them out on their asses? Headlines via Corporate Crime Reporter. Here we go again:

Five Major Banks to Plead Guilty

Five major banks – Citicorp, JPMorgan Chase & Co., Barclays PLC, The Royal Bank of Scotland plc and UBS AG – will plead guilty to felony charges.

Citicorp, JPMorgan Chase & Co., Barclays PLC, and The Royal Bank of Scotland plc will plead guilty to conspiring to manipulate the price of U.S. dollars and euros exchanged in the foreign currency exchange (FX) spot market and the banks have agreed to pay criminal fines totaling more than $2.5 billion.

UBS AG will plead guilty to manipulating the London Interbank Offered Rate (LIBOR) and other benchmark interest rates and pay a $203 million criminal penalty, after breaching its December 2012 non-prosecution agreement resolving the LIBOR investigation.

In conjunction with previously announced settlements with regulatory agencies in the United States and abroad, including the Office of the Comptroller of the Currency (OCC) and the Swiss Financial Market Supervisory Authority (FINMA), today’s resolutions bring the total fines and penalties paid by these five banks for their conduct in the FX spot market to nearly $9 billion.

Gosh, who couldn’t have anticipated this happening? In their post, JPMorgan Chase: Corporate Rap Sheet, the Corporate Research Project calls the company: “… a prime symbol of financial sector misconduct and reckless behavior…”; personally, I doubt there’s anything reckless about their dealings. I think JPMorgan Chase has decided they will keep doing business as usual as long as they’re only punished with measly fines. And they are measly, all things considered. Two things have to start happening with big bank crime:

  1. People Have To Start Going To Jail
  2. No Part of Any Fines Paid Should Ever Be Tax Deductible

Duke Energy Apologizes for Environmental Crimes, Will Pay $102 Million

Three subsidiaries of North Carolina-based Duke Energy Corporation, the largest utility in the United States, pled guilty to nine criminal violations of the Clean Water Act at several of its North Carolina facilities.

The company and will pay a $68 million criminal fine and spend $34 million on environmental projects and land conservation to benefit rivers and wetlands in North Carolina and Virginia.

But hey, they apologized, right?

The Consumer Financial Protection Bureau (CFPB) filed a complaint and proposed consent order in federal court against PayPal, Inc. for illegally signing up consumers for its online credit product, PayPal Credit, formerly known as Bill Me Later.

The CFPB alleges that PayPal deceptively advertised promotional benefits that it failed to honor, signed consumers up for credit without their permission, made them use PayPal Credit instead of their preferred payment method, and then mishandled billing disputes.

 

martha stewart

 

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Filed under Banking regulation, Big Banks, Corporate Crime