Posted: 8/9/2014
Trigger
The print edition of wall street journal reported yesterday (8/8/2014) in an article “Deutsche Bank Ordered by U.S. Regulators to Improve Reporting Systems, Risk Controls/Confidential Memo Requires that Bank Make Far-Reaching Improvements”
Deutsche Bank is also under repeated pressure from the U.S. Commodity Futures Trading Commission.
A Pattern Has Emerged
The U.S. government under President Obama has an urge or obsession to punish large banks for alleged charges of causing the Financial Crises and Great Recession. The U.S. federal government has now extracted or shall we say extorted 10s of billions of dollars from large banks. Big government is always addicted to more money!
Populists have long claimed that the large banks or any of their employees need to be punished.
A Confidential Memorandum Of Understanding
As the wall street journal reported it is a private, confidential memorandum between the Federal Reserve Bank of New York and New York’s Department of Financial Services and Deutsche Bank to overhaul its technology and compliance procedures by mid-2015. This agreement is in effect since 2012.
Wall street journal failed to mention whether this agreement had previously been disclosed in any of the financial filings of the Deutsche Bank or whether it was so confidential that Deutsche Bank was even discouraged from disclosing it. The Wall street journal, however, says “Memorandums of understanding like the one involving Deutsche Bank aren't typically made public. Lawyers who have dealt with them estimate a half-dozen of the biggest banks might be subject to them at any one time, though they differ in severity and often are resolved in a year. They can immediately affect a bank through extra reporting burdens and examinations.” (emphasis added).
Further, the Wall street journal reports that “In a separate move, the New York banking regulator is planning to install a monitor inside Deutsche Bank, and another one inside Barclays PLC, in the U.S. as part of a continuing investigation into potential manipulation of the foreign-exchange market, the Journal reported last week. Agreements with the banks over how and when the monitors will operate are expected to be in place by September”
Blatantly Unconstitutional
This kind of tight and expansive government control and supervision of any private businesses in the U.S. is blatantly unconstitutional! Doing business in the U.S. is becoming more and more a pain!
The extensive usurpation of the private financial sector in the U.S. by federal and state governments has been going latest since the Great Depression. This is totally unconstitutional!
Unfortunately, too many politicians and government officials in the U.S. are statist authoritarians!
Free The Markets!
Get big government out of the way and let free markets handle companies that are not cautious!
In free markets, individuals would privately insure their accounts, irresponsible banks vanish or have to pay higher premiums for insurance etc. etc.
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