Democrats Proven Right As Big Banks Fined Billions For Currency Manipulation Scheme

elizabeth warren bernie sanders hell no liberal caucus
The Department of Justice announced the guilty pleas of five big banks:

Citicorp, JPMorgan Chase & Co., Barclays PLC, The Royal Bank of Scotland plc and UBS AG – have agreed to plead guilty to felony charges. Citicorp, JPMorgan Chase & Co., Barclays PLC, and The Royal Bank of Scotland plc have agreed to 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. A fifth bank, UBS AG, has agreed to 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.


According to plea agreements to be filed in the District of Connecticut, between December 2007 and January 2013, euro-dollar traders at Citicorp, JPMorgan, Barclays and RBS – self-described members of “The Cartel” – used an exclusive electronic chat room and coded language to manipulate benchmark exchange rates. Those rates are set through, among other ways, two major daily “fixes,” the 1:15 p.m. European Central Bank fix and the 4:00 p.m. World Markets/Reuters fix. Third parties collect trading data at these times to calculate and publish a daily “fix rate,” which in turn is used to price orders for many large customers. “The Cartel” traders coordinated their trading of U.S. dollars and euros to manipulate the benchmark rates set at the 1:15 p.m. and 4:00 p.m. fixes in an effort to increase their profits.

In other words, two of the same banks (Citicorp and JPMorgan Chase) that received billions of dollars in taxpayer bailout money during the financial crisis promptly went back to cheating investors and rigging markets. Even worse, Sen. Elizabeth Warren pointed out in March 2015, that these banks received trillions of dollars in backdoor lending from The Fed.

At a hearing on Fed Accountability and Reform, Sen. Warren said, “During the financial crisis, Congress bailed out the big banks with hundreds of billions of dollars in taxpayer money, and that’s a lot of money. But the biggest money for the biggest banks was never voted on by Congress. Instead, between 2007 and 2009, the Fed provided over $13 trillion in emergency lending to just a handful of large financial institutions. That’s nearly 20 times the amount authorized in the TARP bailout. Now, let’s be clear, those Fed loans were a bailout too. Nearly all the money went to too-big-to-fail institutions. For example, in one emergency lending program, the Fed put out $9 trillion and over two-thirds of the money went to just three institutions: Citigroup, Morgan Stanley and Merrill Lynch.”

Two weeks ago, Sen. Bernie Sanders (I-VT) proposed a bill to break up the big banks. The Sanders bill would specifically break up JPMorgan Chase, Bank of America, Citigroup, Goldman Sachs, Wells Fargo, and Morgan Stanley.

As long as the big banks exist, they will continue to find ways to cheat investors while taking taxpayer money when things go wrong. The fines are a small cost of doing business for these giants. Fines won’t stop the big banks. Prison terms for the criminals and the break up of these gigantic institutions are the only ways to clean up a corrupt financial system that is robbing ordinary Americans.

43 Replies to “Democrats Proven Right As Big Banks Fined Billions For Currency Manipulation Scheme”

  1. Iceland did a nice job of dealing with their bankers.
    Draw and quartering sounds like a nice idea to me, personally.

  2. Watch the GOP come to their defense. Let’s see some of these parasites thrown in jail AND have their personal assets seized to refund the retirement accts that were drained by these assholes.

  3. Wow, did Bernie and Liz do anything to cause the Dept of Justice to do this?

    Or was it just the two recent things they did that caused their pictures to be so prominent above.

    Nevermind, I will go read it somewhere else so I can find out it was nothing to do with them. I am guessing I might be wrong, but it happens with every story here being all about these do for writing a letter or something.

    I didn’t dislike them as much before I came to this site. Funny how their idol status around here made me realize even more they are very overrated.

  4. So let me see if I got this right. The banks have to pay 2.5 billion after receiving 13 trillion in emergency funds on top of the hundreds of billions in bailout money?

    Sounds like a good return on the investment. Now when they go to jail and get executed then I will believe they are people too

  5. I just scanned the story and there is no mention of them in The NY Times, Reuters, or any other major story breaker mentioning these two. They must have missed that angle.

    “British banks Barclays Plc will pay $650 million in criminal penalties and Royal Bank of Scotland Plc $395 million. Each will plead guilty to one felony count of conspiring to fix prices and rig bids for U.S. dollars and euros in the foreign exchange spot market.

    Euro dollar traders at four of the banks described themselves as members of “The Cartel” and used an electronic chat room and coded language to manipulate exchange rates to increase profits, the Justice Department said.”

    Clearly Sanders and Warren have foreign policy banking experience too. Their capes for super hero status are on order.

    I am so glad the warrendeblasiosanders team is in cahoots to work for the little guys against big bad Obama, Kerry and Feinstein too…. oh, wait…..

    The propaganda is thick on the left and right.

  6. It’s all about setting the tone. Sanders has been drilling the media weekly/daily to push for these ideas and it’s getting a lot of popular support, so now other more pragmatic people and organizations start to see which way the wind is blowing, and act.

    Bernie and Liz are playing the vastly underrated role of agitator/bully pulpit in the best possible way. Also qualities that are good in a president.

  7. Did Eric Holder have anything to do with it?

    Of course not, he isn’t mentioned, his picture isn’t on this article. Read above. IT was WARREN and of course, Bernie too.

  8. Of course the GOP will “stand their ground” with Wall Street and banks. Reminds of the saying “he ain’t heavy, he’s my brother” Original song lyrics by Kelly Gordon, 1969.

  9. Hey, you idiots who are so proud of yourselves for pointing out that Warran/Sanders had “nothing to do” with this case – go work on your reading comprehension skills or watching Hannity of whatever you do with your time. The headline says all you need to know, which is that the democrats who’ve been pointing out how crooked our financial system is, were right. They were right. That is all the story says. They were right. It isn’t about them busting into the offices of Goldman Sachs and arresting anyone. Its about them being right when they speak about the scumbags on Wall Street.

  10. not too bright are ya? The story isn’t about them having anything to do with the case. The story is about them being right. Thats all. They are right when they talk about the crooks who’ve ruined our financial system. If you go back and look closely at the headline and read slowly so your weak mind can comprehend what you’re seeing, it says “Democrats Proven Right….” It does NOT say “Democrats Arrest Bankers..,” or “Warren/Sanders Force DOJ to Arrest Bankers..” is says they were RIGHT in their criticism of the system. Idiot.

  11. There have been people speaking about this for as long as there have been money bags banks.

    Not long ago the words Bank of America were enough to make most people spit just to say those words.

    Before that, decades ago, I can remember being furious at Chase Manhattan Bank, the original version.

    It is kinda important to credit the people who bring their feet to the actual fire. Even if the fire just requires them to use a band-aid and continue on business as usual.

    As always.

    I don’t have many heroes in my life. The ones I do have can be counted on one hand. They earned it.

  12. Every story here is about them and how they will “destroy the TPP for good and no dems will vote for it” and “Terrify Wall Street” and a dozen other examples of extreme hero worship rhetoric about this dynamic duo.

    Pretty icky.

  13. Just me don’t call the others idiots.

    I am the only one. I am a dem.

    I forgot to add “KILL the Koch Machine” to their attributes.

    I just find EVERY single time they are mentioned to be OVER THE TOP.

    Just me. Everybody else just loves them some Bernie and Warren worship.

  14. My first thought reading the first paragraph was that if these corps are “people” and these “people” commit felonies then how do we send them to prison? You can’t have it both ways jackasses – either the corps are “people” with all that entails (yeah right) or they aren’t and the real human people that committed the crimes have to do the time.
    We just have to get the public to see the 27 8×10 color glossy pictures with the circles and arrows and the paragraph on the back on each one explaining what each one was to be used as evidence against the corps and the human people committing the felonies. Oh wait.. wasn’t that vocal show on last night. It’s bread and circuses. As long as I got my bucket of slop and my “reality” teevee I guess they can do it, just don’t bother me.

  15. Nope, just me. I did read it. And I understood. And I mentioned the things they said recently as being the only things that tie them to this article, however tenuously.

    Yes, it must be that I do not see the HUGE connection to them being all about the Justice Dept. but it does seem every story, not matter how fleeting, is tied to them somehow around here.

    I know “one issue” Liz and “Vermont” Bernie are not the only people in the Senate but I don’t recall any others mentioned here at all in any articles. Others are mentioned now and then in the commments at least.

  16. LMFAO, I love my liberal brothers and sister but C’mon anyone who thinks Eric Holder is WHIPPING THE BANKS A$SES! you’re delusional. The BANKS run america! I’m SORRY but it is what it is, these banks MAY pay a fine but trust me, they’ll do what corporations ALWAYS do! deny any wrong doing, get the BEST corporate lawyers on EARTH run commercial saying their being PICKED ON! and IF! I say “IF” they’re found negligent, they’ll publically agree to pay and negotiate for pennies on the dollar behind CLOSED DOORS!! YOU disagree with me??? look what BP pulled!! enough said.

  17. So try to answer this Hillary troll: How would Hillary deal with the too big to fail Wall Street banks? How will Hillary be able to do anything about this considering she is Wall Street’s Democratic poster child? It was her husband Bill who signed the repeal of the Glass-Steagall Act. Hillary is no better than the republicans when it comes to the too big to fail Wall Street banks.

  18. night, nobody loves a liberal more than I.

    Nobody was whipping the banker asses. The
    banks run the country, but the little slap on their wrists was done by the FBI, Justice, etc. At least give the credit to Obama Administration. The people internationally who worked on this, if it is going to be touted as it is here, deserve the headline.

    Those two, not so much. And it is all the time. Gets me cranky. Not as angry as you, but I get a little miffed.

  19. Here we go. Just remember we all are democrats and going through this in 2008 all I can say this will not end well

  20. That is not the first time I have been called a troll here. It is the third.

    And it isn’t the first time somebody called me a “one person Hillary campaign” or “idiot” and other nasty bits.

    DJ is right, it isn’t going to end well.

    I think the history of the Glass steagall act is pretty well known and discussed.

    Your ignorant remark doesn’t earn an answer. And go find a better candidate, you just will not.

    Clearly, I was a progressive when times were different. Now, it really does mean regressive.

  21. I thought you were posting something like that from the Onion or something.

    Then I googled the real presser – and there it was.

    St. Elizabeth my little ass.

    You might want to put this link into the next BJ article for them. You know, for a dose of reality.

    Well, if Hillary is verbotten here, I will see ya’ll later. Thanks for the fishes.

  22. I don’t think Hillary is verboten. While some writers may favor Sanders /Warren because they may find themselves agreeing with their stances they do stick up for Sec.Clinton.

    Right now there are 2 featured stories on Clinton. 2 on Sanders and 1 one Warren. All favorable to all of them.Now there are some posters who don’t like the Clintons for various reasons and that is their right just like its your right to argue her positions.

    Like I said I have seen this play before and it got real ugly so maybe everyone should take their advice and don’t attack personally. Stick with the issues. We have to spend too much energy defending against the rethug trolls that when we go at each other they just laugh and feed false info to egg the fight on.
    Just my 2 cents

  23. They don’t favor them. They idolize them.

    This is going to be a very long campaign.

    Left wing -SANITY – Right wing.

  24. I don’t think that is true. Come on now. Question in 08 were this pro Hillary to the point you bashing Obama? Because I know back then I was bashing Hillary to the point I got banned from a couple of sites. This is why I am neutral in this race.

    A lot of good people are for and against this treaty. That doesn’t mean one side is right or wrong. Its just is.

  25. That was hell. Sure I was. 99 problems…
    Never want to go through that again and we put that in the past where it belongs.

    Then here I am reminded of a little bit of it, now and then. Hell, you guys were rough, I am not surprised you were banned.

    IT WAS YOU!!!! lol.

    Thank GOD that ended. And look what came of it. Working together.

    I have a real problem with content filled with errors. The quantity out weighs quality and fact is glossed over for hyperbole.

  26. So, unless they can prove beyond any doubt that their shenanigans did not affect my paltry little accounts with these greedy bastards, I’ll just have to withhold any payment. I don’t want to find illegal activity, after all.

  27. Agreed. More importantly, the chairmen/CEO’s and the second tier (at minimum) should go to prison for a LONG time and have their personal assets seized. Repaying the taxpayers (in the form of fines) from corporate profits is the equivalent of a stern scolding.

  28. Garnish their offshore accounts and set up 2 funds. One to raise 222 million people in or near poverty level in the US to above poverty level – about $176 billion a year. Second globally give about $200 billion a year to the United Nations to bring the world population out of poverty living on less the $2 a day.

  29. Fined? They should all be thrown in prison. “Corruption flourishes where an atmosphere of acceptance prevails.”

  30. interesting, then why did the Democrats vote to bail them out? 86 more Democrats than Republicans voted in favor TARP. Sounds like Bernie’s buddies would have more to lose then these GOP boogeymen.

  31. Senators Glass and Steagall are dead and gone, so there’s no bringing a Glass-Steagall Act back.

    DEFINITION of ‘Glass-Steagall Act’

    An act the U.S. Congress passed in 1933 as the Banking Act, which prohibited commercial banks from participating in the investment banking business. The Glass-Steagall Act was sponsored by Senator Carter Glass, a former Treasury secretary, and Senator Henry Steagall, a member of the House of Representatives and chairman of the House Banking and Currency Committee. The Act was passed as an emergency measure to counter the failure of almost 5,000 banks during the Great Depression. The Glass-Steagall lost its potency in subsequent decades and was finally repealed in 1999.

    Read more:

    However, a Warren-Sanders Act similar to Glass-Steagall is most welcome.

  32. Rin, this story is about the fact that Sanders and Warren had warned everyone about the banks and their corruption, and they were and are correct and should be commended for that, whereas the MSM is talking about the corruption itself.

    There’s a difference in content.

  33. These two, yes, they talk about it.

    So has every other democratic person ever elected to office, and millions of people who march in the streets over it every decade or so. They didn’t invent uncovering bank fraud. Some people give them a weeeeee bit too much credit for writing a letter or unpassed bill.

    Warren made a statement at a hearing and Bernie proposed a bill.

    Do you know how many bills politicians propose? Lots. How many pass? FEW.

    When they pass some big banking bills they will deserve praise. Till then, nope.

  34. JAIL TIME,,,,NO FINES,,,,Iceland has recovered from the global banking crisis and is the fastest growing economy in the E.U. This is largely due to bailing out homeowners instead of bailing out banks, and holding bankers responsible for their crimes. It seems when you bail out the homeowner, the money still goes to the bank. This doubles the impact of the bailout dollar. It is people walking about with brass in pocket that grows the economy, not any Trickle Down Fairytale……………………………………………………………………………Forum Post: ICELAND Putting Bankers and Politicians on trial for corruption !!
    Former leader of Iceland put on trial for economic crisis | PRI.ORG
    Mar 6, 2012 – Geir Haarde is thought to be the first world leader to be put on trial …

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