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It's not tolerated? They're paying a billion dollars in fines for doing it.
by missedthecue 6y ago
It's not tolerated? They're paying a billion dollars in fines for doing it.
- jjoonathan 6y agoHow much did they make from it?
- hu3 6y agoIf companies can get away with repeatedly breaking the rules then it is not forbidden. Just taxed in the form of fines.
- moneytide1 6y ago"The accord would end probes by the Justice Department, the Commodity Futures Trading Commission and the Securities and Exchange Commission into whether traders on JPMorgan’s precious metals and treasuries desks rigged markets, two of the people said." So $1B paid will stop further investigations? Meaning it can continue to manipulate and the fee is just the cost of doing business?
- mlindner 6y agoNo? The fine is there to prevent them doing it further. They'll start investigations again if they see more of such activity.
- ponker 6y agoYou use italics for the word “billion” but JPMorgan doesn’t.
- ddoran 6y agoThe shareholders of JP Morgan are paying the fine. Not the bad actors behind the market abuse.
- vkou 6y agoThe shareholders are part of the bad actor, because the shareholders control the board, and it's the board's job to police the company, and to make sure that it's actually ran well, and isn't just a free-for-all frat party. If the shareholders cared to avoid these sorts of judgements, they'd require that the firm operate more conservatively.
- hogFeast 6y agoThe guy involved has left JPM, most of his team will have left too, they will have bonus payments clawed back, they will be banned from the industry, and are being charged criminally. Afaik, two people from this team are currently in prison.
- deleted 6y ago[deleted]
- chabes 6y agoIf they are making more than a billion from manipulating the markets, the billion dollar fine is part of the business plan.
- hogFeast 6y agoThey didn't. The size of the fine is unrelated to the profit (at the very least, the fine is 10x the profit).
- thrownaway954 6y agothat's what they are claiming. i'm sure they are not reporting everything they made. companies who do these sorts of manipulations know what they are doing and hide as much as they can.
- klyrs 6y agoBut where's the law and order? Do the executives and traders get tackled, beaten, strangled and shot a dozen times in the back? Nope. Their employer gets fined and they keep their paychecks and bonuses.
- NovemberWhiskey 6y agoDid you read the bit in the article where the former head trader of the precious metals desk is being prosecuted for RICO violations? Along with several other traders from the desk?
- okprod 6y agoJPM probably made a lot more than that fine. First week orientation in my friend's MBA program before classes started was a session about ethics. He thought it would be about being ethical, but the professor said as businesses for any risky decision they should weigh potential profit versus penalty/punishment, because if it makes financial sense to pursue something, even an unethical endeavor, any penalties/fines are justified.
- SpeckOfDust 6y agoIf that's true it's so messed up.