According to press reports, big banks in the USA and Europe have paid fines totalling more than $160 billion for criminal and quasi-criminal offences, most recently for rigging Libor and the Forex markets.
As this is written, an ex-Citi Libor trader is on trial in London for fraud. If convicted, he could be jailed for as much as ten years. The British have not chosen the American Way for punishing bank fraud—fining stockholders.
Should Badly-Behaved Banks Be Allowed to Manage Pension Funds?
Why Has No American Banker Gone to Jail?
Don provides his view and investment recommendations.