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It's not the regulators, it's the prosecutors in New York, who have jurisdiction over the European banks since USD transactions are cleared there. The problem
by zmb_ 11y ago
It's not the regulators, it's the prosecutors in New York, who have jurisdiction over the European banks since USD transactions are cleared there.
The problem is that banks absolutely cannot afford to risk going to court, since losing a case could mean losing their ability to deal in USD, which would be the end for them. That means that the banks must settle any case brought by the prosecutors. The prosecutors in New York have used this leverage to squeeze billions in settlements from the European banks. The "justice"system has basically turned into what amounts to a protection racket.
- narrator 11y agoWhich is why the Chinese are trying to get out from under all this influence by creating their own parallel version of various aspects of the western financial system[1][2]: [1] https://en.wikipedia.org/wiki/China_UnionPay https://en.wikipedia.org/wiki/China_UnionPay [2] https://www.rt.com/business/239189-china-payment-system-ready/ https://www.rt.com/business/239189-china-payment-system-read...
- pizza234 11y agoWith "protecting" you mean for example protecting the money laundering business in Mexico? Your perspective is too generalized, thus ultimately false. The case depends on the size of the bank. In the case of a famous British bank, the prosecution literally stated that they could not prosecute the bank because it would have been too much of a big impact on the economy. They got fined with the equivalent of a few weeks of profit, and who knows how much they ever profited from such illegal activities. Doesn't sound a protection racket to me.
- et2o 11y agoWon't someone think of the banks!? Your comment is farcical; it's been widely written about how lightly banks and other financial institutions get off following egregious violations of law.