More news on big banks….
The DOJ entered into a settlement agreement with Deutsche Bank subsidiary – check out the press release here
The headline is: “DEUTSCHE BANK’S LONDON SUBSIDIARY AGREES TO PLEAD GUILTY IN CONNECTION WITH LONG-RUNNING MANIPULATION OF LIBOR”
Yeah, that is pretty bad news…
According to the Press Release: “Deutsche Bank entered into a deferred prosecution agreement today and admitted its role in manipulating LIBOR and participating in a price-fixing conspiracy in violation of the Sherman Act by rigging Yen LIBOR contributions with other banks”
“deferred prosecution” = at the of this, so long as the settlement is abided by, Deutsche Bank isn’t going to have a criminal record. How you throw a bank in jail for violating a settlement agreement is beyond me…
It appears that the Bank will be paying approx $775 Million in penalties.
In other news:
The Consumer Financial Protection Bureau, “the agency established by the 2010 overhaul of financial regulations to enforce laws aimed at protecting consumers from unfair or illegal practices by banks, mortgage lenders and other financial services providers” looks to having its budget restricted some. Check out the article here
By the numbers:
“The measure would cap the agency’s budget at $655 million in 2020 and $720 million in 2025. This year’s budget is $582 million.”
That’s a lot of money spent on holding banks accountable.
Question:
Is it working?
If the DOJ keeps assessing large fines and slapping banks with criminal records, maybe…
Questions? Comments?
email: Jeshua@dwlawpc.com
Purpose Driven General Counsel 