Richard Bowen

  • Home
  • About
  • Speaking
  • Videos
  • Media/Press
  • Testimonials
  • Blog
  • Contact
  • +1-214-604-5492

May 29, 2015 By Richard Bowen

If you ain’t cheating…

Loretta-lynch
Source: ibtimes.com (Wikimedia)

“If you ain’t cheating, you ain’t trying,”’ says a Barclay Bank trader!

This last week a consortium of the six biggest national and international banks were fined $5.6 billion for manipulating global currency and interest rates, going back to 2007. The six banks were Bank of America, Barclays, Citigroup, JP Morgan Chase, Royal Bank of Scotland and UBS. All but UBS admitted to criminal guilt, as well.

The guilty verdicts were the result of a long investigation into the actions of about twenty employees, who refer to themselves as “the cartel” or “the Mafia.” Using coded communication in an online chat room, they rigged the exchange rate between the dollar and the euro, violating the rules on market manipulation and collusion.

Typically, one trader would build a huge position in a particular currency, unload it at just the critical moment hoping to move prices. Traders at the various other banks would play along using the online chat rooms to coordinate their activities.  One of them, a trader at Barclays said, “If you ain’t cheating, you ain’t trying.”

The banks also misled their clients about the price of the currencies, imposing hard markups. Trading foreign currencies generally involves low risk and high revenues. In fact, after the 2008 financial crisis, this was the kind of activity banks were supposed to expand. But the foreign exchange business, like so much else on Wall Street, is vulnerable to manipulation and what may have started out as the perfect business model turned into yet another breeding ground for bank crime.

Citigroup’s chief executive, Michael L. Corbat, said in a memo to his employees, “The behavior that resulted in the settlements was an embarrassment to our firm.” Citigroup will pay a record $925 million antitrust penalty, making it the largest single fine ever imposed for a violation of the Sherman Act.

The irony is twofold. Federal authorities adopted rules to rein in Wall Street after the last debacle, but exempted foreign exchange transactions.  As there is not any one government agency which is specifically responsible for  policing this market, some of the banks themselves actually set the guidelines for how this business is to be conducted. This void has created more criminal activities and multi-billion dollar penalties. These penalties have all but wiped out the revenue that major investment banks generated from their foreign exchange business last year.

Still, the fines are a drop in the bucket compared to the trillions the big banks received during the last financial crisis. The other irony is that a government bought and paid for by big banks applauds the success of this latest round of fines as a “win-win” for the American people!

Attorney General Loretta Lynch proudly announces this as a success: “Today’s historic resolutions are the latest in our ongoing efforts to investigate and prosecute financial crimes, and they serve as a stark reminder that this Department of Justice intends to vigorously prosecute all those who tilt the economic system in their favor; who subvert our marketplaces; and who enrich themselves at the expense of the American consumer.” 

Irony or outrage? The penalties normally applying for corporate criminal guilt have been waived by the SEC and others. And, these meager fines are not addressing the banks stranglehold on our economy and on our government. They are not stopping criminal behavior and it appears we are not even imposing the right kinds of regulations, leaving it up to the same banks to impose their own rules.

Then we slap wrists for doing so? Banks still continue to commit crimes and then pay for their transgressions with meager fines. Of course, they repeat the cycle. They still enjoy some of their biggest profits and pay nothing as compared to them. And, they still get to write their own regulations and play by their own rules.

Screen Shot 2015-05-29 at 17.25.29As Sam Antar, former Crazy Eddie CFO, convicted felon and now consultant on frauds, recently tweeted:  “Imagine that in the fight against organized crime, the best that the government could do is levy fines. Then, think of Wall St and banks.” 

[tweetthis twitter_handles=”@RichardMBowen”]“If you ain’t cheating, you ain’t trying.” Is that so?![/tweetthis]

Related Articles:

Justice, interrupted: More wrongdoing at banks, more swinging fines, no prosecutions

Rigging of Foreign Exchange Market Makes Felons of Top Banks

Why the $5.7 Billion Dollar Fine on Big Banks for Manipulating Global Currency and Interest Rates Is a Joke

What Would You Do?
Were Bank Settlements Really Payments of Extortion to the Department of Justice??

Tagged With: DOJ, financial crime, Foreign Exchange Fraud

Ethics on your mind? Subscribe to my ezine to get my latest article delivered right to your inbox. Click Here to Subscribe

Richard Bowen is widely known as the Citigroup whistleblower. As Business Chief Underwriter for Citigroup during the housing bubble financial crisis meltdown, he repeatedly warned Citi executive management and the board about fraudulent behavior within the organization. The company certified poor mortgages as quality mortgages and sold them to Fannie Mae, Freddie Mac and other investors.

Related Posts

  • Should the Big Banks Be Nervous?Should the Big Banks Be Nervous?
  • ENRON Stands Unprecedented as the Poster Child of Blatant Corporate FraudENRON Stands Unprecedented as the Poster Child of Blatant Corporate Fraud
  • The DOJ Lemon Award – Go Directly to Jail!The DOJ Lemon Award – Go Directly to Jail!
  • A Test Case for the DOJ’s New Policy?A Test Case for the DOJ’s New Policy?

What People Are Saying About Richard M. Bowen

William D. Cohan"Richard Bowen is one of my heroes. His is a story of human fortitude at its best and Wall Street at its worst."

~ William D. Cohan, NY Times Best Selling Author
2017-06-30T10:08:59-05:00
"Richard Bowen is one of my heroes. His is a story of human fortitude at its best and Wall Street at its worst." ~ William D. Cohan, NY Times Best Selling Author
https://richardmbowen.com/testimonials/2556/

Eileen McDonnell"Richard Bowen reinforced my motto that "there is no right way to do a wrong thing.” Long after his presentation, the conversation has continued about personal responsibility and the courage to challenge things that appear to be wrong. We encourage this dialog and rely on it to help make our business stronger."

~ Eileen McDonnell, Chairman, CEO, & President, Penn Mutual
2015-02-13T19:51:19-06:00
"Richard Bowen reinforced my motto that "there is no right way to do a wrong thing.” Long after his presentation, the conversation has continued about personal responsibility and the courage to challenge things that appear to be wrong. We encourage this dialog and rely on it to help make our business stronger." ~ Eileen McDonnell, Chairman, CEO, & President, Penn Mutual
https://richardmbowen.com/testimonials/711/

Ben Stein"Richard Bowen, you are a star and a hero."

~ Ben Stein, Economist and Political Commentator
2015-02-13T19:50:26-06:00
"Richard Bowen, you are a star and a hero." ~ Ben Stein, Economist and Political Commentator
https://richardmbowen.com/testimonials/712/

Jim Farrell"Richard's speech at the April Financial Executives International dinner was informative, interesting, riveting, and fast moving.  The feedback from members was overwhelming positive, and Richard received one of the few standing ovations given by our membership."

~ Jim Farrell, Program Chairman, Dallas Chapter, Financial Executives International
2014-12-28T19:48:17-06:00
"Richard's speech at the April Financial Executives International dinner was informative, interesting, riveting, and fast moving.  The feedback from members was overwhelming positive, and Richard received one of the few standing ovations given by our membership." ~ Jim Farrell, Program Chairman, Dallas Chapter, Financial Executives International
https://richardmbowen.com/testimonials/532/

Dennis McCuistion"Richard Bowen has been there, done that, and has the scars to prove it, and his message of corruption at the highest levels of industry and government needs to be heard. I only wish that more bankers had the courage that Bowen exhibits. He is not only one of the most talented bankers I have ever met, he has more integrity than all the bankers on Wall Street put together. If his former employer had listened to him taxpayers would not have had to bail out Citi for the third time in the last 30 years."

~ Dennis McCuistion, Host of the McCuistion TV program
2014-12-28T19:48:06-06:00
"Richard Bowen has been there, done that, and has the scars to prove it, and his message of corruption at the highest levels of industry and government needs to be heard. I only wish that more bankers had the courage that Bowen exhibits. He is not only one of the most talented bankers I have ever met, he has more integrity than all the bankers on Wall Street put together. If his former employer had listened to him taxpayers would not have had to bail out Citi for the third time in the last 30 years." ~ Dennis McCuistion, Host of the McCuistion TV program
https://richardmbowen.com/testimonials/533/

Betty Garrett"Richard Bowen is a dynamic, entertaining speaker and story-teller - a CPA with a great personality!"

~ Betty Garrett, Garrett Speakers International
2014-12-28T19:47:50-06:00
"Richard Bowen is a dynamic, entertaining speaker and story-teller - a CPA with a great personality!" ~ Betty Garrett, Garrett Speakers International
https://richardmbowen.com/testimonials/531/

fred-timmons"I believe Richard Bowen is the only keynote speaker to ever receive a standing ovation from the Texas Society of CPA’s at any of its annual conferences."

~ Fred Timmons, Chairman of The Texas Society of CPA's
2014-12-28T19:47:22-06:00
"I believe Richard Bowen is the only keynote speaker to ever receive a standing ovation from the Texas Society of CPA’s at any of its annual conferences." ~ Fred Timmons, Chairman of The Texas Society of CPA's
https://richardmbowen.com/testimonials/530/

Presentation Topics

Playing for High Stakes: The Principles and Practice of Ethical Leadership

Dark Citi: The Story of a Whistleblower

Want to Hire Richard?

Watch Richard

See What Clients are Saying

About Richard

Recent Posts

  • Warmest thoughts and best wishes for a wonderful and safe holiday
  • Thanksgiving 2020
  • Pausing For A While
  • The world is in crisis
  • Relationships Count

Categories

  • Business Ethics
  • Congress
  • Corporate Debt
  • Corruption
  • Ethical Leadership
  • Financial Crime
  • Financial Crisis
  • Financial Crisis of 2008
  • Holiday
  • International
  • Mortgage Lending
  • Mortgage Meltdown
  • Relationships
  • Texas Politics
  • The Fed
  • Too Big To Fail
  • Uncategorized
  • Updates
  • Wall Street
  • Whistle Blowers

About Richard

Now an ethical leadership speaker, Richard Bowen was Citigroup's Business Chief Underwriter during the housing bubble.

Read more

Connect with Richard

  Facebook   Twitter   Linked   Google Plus   YouTube

Contact Us

Phone: +1-214-604-5492

Email: Richard@RichardMBowen.com

Contact Richard
Google+

Copyright 2019© 2021 · Richard M. Bowen | ALL RIGHTS RESERVED.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are as essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled

Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.

SAVE & ACCEPT
X
Sign up to receive my blog posts via email!
Subscribe >>