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The real problem is that the big banks break laws and regulations continuously. If you look at how many times have they been caught, the list is very, very lon
by gorbachev 5y ago
The real problem is that the big banks break laws and regulations continuously.
If you look at how many times have they been caught, the list is very, very long.
Yet every time there are no real consequences. A fine here and there and settlement agreements written in a way that nobody gets any trouble for anything. I'm actually surprised the bank admitted to anything this time. Usually they just pay a fine, and admit to nothing.
For heaven's sake, even HSBC drug cartel money laundering scandal results in not a single person going to prison or getting fired. HSBC even violated the additional rules they were supposed to be subjected to during a probation period after settling, and yet again nothing happened, except they paid a small(ish) fine.
The entire industry is completely lawless.
- conductr 5y agoIt’s true for all heavily regulated companies. The regulations can be difficult to interpret, exceedingly onerous, or overly verbose. I’ve worked in banking and healthcare and it’s not unusual for the regulators to fine you for something you didn’t know about (not even your army of attorneys or compliance department), or fine you because you interpreted things differently and now they disagree. Sometimes you change your internal operations and technologies, spending big $$$, only to find you to find out about some new case law that opposes your original interpretation. Then, your faces with the question of do we go through a massive re-implementation/disruption, or do we just take the risk. Usually, in my experience, the cost of fixing things internally far exceeds the cost of fines and so the business decisions often boil down to that simple ROI math.
- thoughtstheseus 5y ago^That's even after hiring the regulators themselves.