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     Jul 9, '14

Fine burden for finance
By Martin Hutchinson

The French bank BNP Paribas is about to be fined US$9-$10 billion for doing business with Iran, a country with which the US is finding common ground in Iraq. Since 2008, the US and the trial bar have obtained fines and settlements from global banks totaling $88 billion (as of early June.) Now medium-sized US banks such as Sun Trust are being zapped with fines - $968 million to settle claims over its mortgage practices.

Thanks to the Federal Reserve, banking profits have been

exceptionally good the last few years, so the fines have just been a cost of doing business. But as other countries seek to emulate the US, the problem will become more serious.

One must ask the question: has finance become so legally toxic that, as with asbestos companies in the 1980s, it is impossible to survive the legal penalties and class-action lawsuits? More ...

Martin Hutchinson is the author of Great Conservatives (Academica Press, 2005) - details can be found on the website www.greatconservatives.com - and co-author with Professor Kevin Dowd of Alchemists of Loss (Wiley, 2010). Both are now available on Amazon.com, Great Conservatives only in a Kindle edition, Alchemists of Loss in both Kindle and print editions.

(Republished with permission from PrudentBear.com. Copyright 2005-14 David W Tice & Associates.)




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