big 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...

Goldman Sachs Stock Price Can't Escape Volcker Rule Time Bomb

goldman sachs stock price

The Goldman Sachs stock price fell yesterday (Thursday) on what was a wildly successful earnings season for the investment banking giant.

Goldman Sachs Group Inc. (NYSE: GS) earnings crushed estimates across the board. But traders on the day were correct in their assessments. GS stock is not one to pile into right now.

In fact, big bank stocks are not the best place to put your money. And Goldman Sachs has its own challenges ahead...

Bank Stress Tests Prove the Worst History Repeats Itself

Thoughtful Investor

Two out of 31 big banks failed the Fed's bank stress tests. One was Deutsche Bank AG (USA) (NYSE: DB), and the other was Santander Holdings USA Inc (NYSE: SOV-C).

But Santander's biggest U.S. unit manage to sell a boatload of subprime auto loans - worth $712 million.

Here's why this bond deal matters - and how it proves that the worst history always repeats itself...

Bank Stress Test Kabuki Theater Begins Again

bank stress test

Welcome to another performance of "Bank Stress Test" Kabuki Theater - where the whole show, which first started in April 2009, is just a public performance.

In 2014, Bank of America (NYSE: BAC) passed its first round of stress tests with flying colors! For such good capital management, BOA was permitted to reward its shareholders.

But then an issue arose: BOA had miscalculated its capital... by a few billion dollars. And it gets worse than that...

The Truth Behind Central Banks' Machinations

central bank

Central bankers disguise themselves as friendly shepherds. But really it's more of a "wolf guarding the henhouse" situation...

You see, we've been experiencing deflation, not inflation...on a global scale. Why aren't prices rising? Why aren't wages rising? Why is global demand so lackluster?

Well, the answer has to do with central bankers' and how they treat your money...

How to Borrow Cheaply from a Government-Owned Bank

banks

The free market for banking services in the United States isn't a free market at all.

The truth is the biggest commercial banks in America operate with virtual impunity as a government-subsidized, government-protected oligopoly.

So, why don't we drop the pretense that government-owned banks don't belong in a free market economy and create a network of honest state-owned banks to compete with so-called private banks?

We should. In fact, we have an almost 100 year-old U.S. bank as a model to copy.

JPM Stock Price Hit by Earnings Miss – but Bigger Troubles Ahead

JPM stock price

The JPMorgan Chase & Co. (NYSE: JPM) stock price faltered more than 4% on this morning on an earnings miss.

JPMorgan was hit hard by legal fees. The bank, along with several other big banks across the globe, had to cough up just over $1 billion. Most of that stems from a November settlement tied to shady activity in the foreign exchange market. But legal fees are nothing new.

JPMorgan is facing much bigger problems than the routine settlements...

JPMorgan (NYSE: JPM) Is the Latest Target on Goldman Sachs' "Hit List"

NYSE: JPM

JP Morgan (NYSE: JPM) is about to become Goldman Sachs' newest toy. Except its version of "playing" is "smashing it into pieces."

That's right, Goldman Sachs has joined a bandwagon of analysts calling for JP Morgan Chase to break up. And since Goldman Sachs is simply the best at what it does - good and evil - their mission shouldn't be too hard.

Read More…

The Brave New World of Central Bank Tyranny

central bank

Thanks to U.S. Federal Reserve policies that are holding market rates down near zero, you're barely getting one one-hundredth of a percentage point on your cash deposits.

It's bad enough that you're getting practically no yield on your savings. But now the big banks - those greedy fellows that we taxpayers bailed out from a crisis they actually caused - are about to start charging you to deposit money with them. All thanks to policies enforced by the central bankers.

Welcome to the brave new world of central bank tyranny...

Another Washington "Watchdog" Proves to Be a Paper Tiger

P

I've talked about the dangers posed by the scary move the U.S. Treasury bond market made back on Oct. 15.

And my cautionary tale was totally justified.

Indeed, in the December 3 Wall Street Journal, the lead article in the Global Finance portion of the Money & Investing section was "Watchdog Warns of Risk in Markets."

Apparently, the Office of Financial Research (OFR), the watchdog team created out of Dodd-Frank legislation under the "watchful" eye of the U.S. Treasury Department, observed the same move that I did - and found it just as rattling.

According to The Journal, the OFR warned that "the system is vulnerable to repeats of what occurred in October when tumult in the trading of U.S. Treasury securities spread broadly to futures, swaps and options markets."

The watchdog group's just-released third annual report soberly noted that "although the dislocation that peaked in mid-October was fleeting, we believe there is a risk of a repeat occurrence," and further warned that resulting volatility "raises a host of financial stability questions."

That's not what you want to hear. Let me tell you why...

Science Proves What We Said About the Banksters

Thoughtful Investor

"Business culture in the banking industry is favoring, or at least tolerating, fraudulent or unethical behaviors."

That's what Ernst Fehr told reporters in a telephone interview last week.

Fehr is an economist at the University of Zürich in Switzerland who co-led a study about business behavior.

Fehr's study proves what we've all long known - but it wasn't the only piece of news last week that demonstrates the crookedness of bankers.

Today I'll show you how Wall Street's manipulations are affecting the prices we pay for everything from the cars we drive to our pots and pans.

So you know you want to know more about this...

How We'll Play the 2014 Year-End Rally

what stocks do after midterm elections wall street

With the Dow Jones Industrials and the S&P 500 indices repeatedly making new highs, chances are better than good that markets will rally through year-end.

There are lots of reasons why stocks are headed higher, but one in particular is telling.

It's really a simple one, yet too many people have overlooked it; indeed, most wouldn't even give it enough thought.

And that would be a big mistake.

You see, if you understand that one compelling reason, you can pick some winners, and pocket big profits, yourself...

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