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Banks

How Much the Banks Were Fined This Week – BCS, C, JPM, RBS, UBS, BAC

Banks Owe

On Wednesday, five of the world's biggest banks pled guilty to manipulating foreign currency rates for their own benefits. They will now pay a combined $5.6 billion in penalties.

With this week's settlements, big banks have now paid more than $60 billion in fines over the past two years.

This chart shows how much the banks were fined this week.

Fines Are a Cost of Doing Business for Big Banks

Bank

The cost of criminality is built into the balance sheets of global financial institutions and accordingly priced into their stocks. Five of the world's biggest banks -JPMorgan Chase, Citicorp, Barclays, UBS, and Royal Bank of Scotland - pleaded guilty to currency rigging in the $5 trillion a day foreign exchange market, and settled for fines totaling roughly $5.7 billion (representing the earnings of about a day or two for each bank).

They also received...

Deutsche's Libor Fine Takes Shine Off Sector's Q1 "Revival"

Money in the bank

The rebound in Q1 Fixed Income, Currency and Commodity (FICC) revenues at big broker-dealers like JP Morgan, Morgan Stanley and Goldman Sachs has emboldened some investors to pile back into the sector. Deutsche Bank's record-breaking $2.5 billion fine for manipulating benchmark interest rates shows that it's probably wiser to stay away.

True, the German behemoth's stock yawned at the news...

Why the European Central Bank's Massive Economic Experiment Will Fail

Eurozone conflict

Last week, the European Central Bank's turn finally came to announce large scale quantitative easing.

As the continent witnesses a battle between deflation and attempts at inflation, will it finally be enough?

Europe is following in the footsteps of the United States, hoping for similar "successful" results.

Instead, it's likely to fall somewhere between the U.S. and Japan.

From the Land of the Rising Sun there is precedent, but it's a forewarning.

Here's the story...

Goldman Sachs' Most Dangerous Trade

Here's something you probably don't know, and it will really tick you off.

You probably do know the biggest banks in the world have commodities businesses.

Those lines of business might include trading desks (trading everything from gold and copper to kilowatts), transportation (pipelines, railcars and tankers) and storage (warehousing) operations, mining operations, as well as production, refining, and raw and finished commodity distribution operations.

What you probably don't know is that one of the "commodities" a few of these monster banks (Goldman Sachs and Deutsche Bank) trade is...are you ready?

Okay, I'll tell... but you won't believe it.

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Best Stocks to Buy Now: A Big Growth Case for Small Banks

While the big banks may have the attention of the Street right now, it's the smaller regional and community banks that are among the best stocks to buy now.

These small bank growth stocks are starting to show dazzling growth as their balance sheets improve dramatically. And they are still very early in the recovery cycle, so there is still plenty of time for individual investors to catch this train...

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After 14 Years of Free-for-All, Glass-Steagall Is Back

The diminutive senator from Massachusetts has got the Big Banks shaking in their boots. Elizabeth Warren fired a Scud missile of legislation at too-big-to-fail banks to separate their commercial banking activities from their investment banking speculation.
Let's see, that might just limit the contagion during the next financial crisis. Find out why Shah Gilani thinks the senator is right on the money...

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The Big Banks On Trial, Again

It looks like the big banks aren't out of the woods from past indiscretions yet.

Just this week the most powerful court in Europe has accused 13 major global financial institutions (many US based) of colluding back in the heady days that led up to the 2008 financial reckoning.

But that's only the tip of this high-end iceberg...

Bill Gross: Why QE Will End Before the Fed Wants It To

Pout Q

Legendary bond guru Bill Gross doesn't think too highly of the Federal Reserve and Ben Bernanke's monetary policies.

"There comes a point when no matter how much blood is being pumped through the system as it is now, with zero-based policy rates and global quantitative easing programs, that the blood itself may become anemic, oxygen-starved, or even leukemic, with white blood cells destroying more productive red cell counterparts," Gross writes in his June investment outlook titled Wounded Heart.

Gross believes that QE, which he describes akin to a bad dose of chemotherapy, will end later this year but not because of a suddenly strengthening economy.

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Do We Really Need the Federal Reserve System?

video-keithfitzgerald-federal-reserve-system

Abolishing the Federal Reserve System might seem like a drastic idea, but not when you get the full story...

You see, Congress created the U.S. Federal Reserve System to restore public confidence, provide the banking system a source of liquidity that would prevent its collapse and protect the public against inflation.

A century later, the banking system is so big its risks dwarf the Fed's liquidity capacity, and what cost a buck back then now will set you back $21.

That's why we asked Money Morning Chief Investment Strategist Keith Fitz-Gerald to explain how the Federal Reserve System actually helps a country's economy.

Most importantly, we wanted to know if the United States - or any country - even needs the Fed anymore.

Just listen to Fitz-Gerald's answer in the following interview.

Why Ben Bernanke's Market Manipulation is So Brilliant

Nothing lasts forever. On Wednesday, Ben Bernanke threatened to take away the punch bowl. Shah Gilani explains the real story behind the move. Read more...

7 Reasons Not to Trust the Bernanke Testimony to Congress

Lie. Pinocchio with a long nose.

As usual, the markets were hanging on every word of the Bernanke testimony to Congress today (Wednesday).

By now, everyone should know better.

In the years that U.S. Federal Reserve Chairman Ben Bernanke has been a member of the Fed - both as a member of the Board of Governors from 2002 to 2005, and in his two terms as chairman beginning in 2006 - he has been stupendously wrong time and time again.

Bernanke gave the markets what they wanted by hinting that his monetary easing policies won't change any time soon, pushing both the Dow Jones Industrial Average and the Standard & Poor's 500 Index up more than 0.5% in midday trading.

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It's Enough to Make Your Blood Boil

According to Shah Gilani, the usual suspects are at it again and nobody but Elizabeth Warren is willing to push back. Read more...

What You Absolutely Need to Know About Money (Part 8)

isolated toy abacus

Shah Gilani explains how the "extend and pretend" game became an institutionalized national treasure... Read more...

What You Absolutely Need to Know About Money (Part 7)

By the start of the 1960s, banking in America was in a state of flux. And as Shah Gilani explains it got ugly fast. Read more...

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