25 October 2020
If you judge a bank by its scandals,recent headlines will have you convinced that Wall Street is hell-bent on living up to all of its stereotypes.
Driving the news: Goldman Sachs,of course, is the biggest and the boldest, paying a total of $6.45 billion in fines and guarantees in the wake of the 1MDB scandal.
- Goldman Sachs pleaded guilty to bribing Malaysian officials, among others, a total of $1.6 billion in order to get deal mandates in the bond and stock markets.
- That's the largest set of bribes ever prosecuted under the Foreign Corrupt Practices Act.
- In a very Goldman twist, the $1.6 billion was not paid from Goldman's own funds. Instead it came out of other people's money — it was skimmed off of bond-issue proceeds that were supposed to belong to the Malaysian people.
- Gary Cohn, who was Goldman's chief operating officer when the bribes were paid, cashed out all of his bonuses when he joined the Trump administration in 2017. He's the one former Goldman official who hasn't agreed to repay a chunk of his 2011 bonus, as the board has requested.
Wells Fargo paid a $3 billion fine for taking advantage of millions of customers by opening accounts in their names that they weren't even aware of.
JPMorgan, which lost billions in the "London whale" trading scandal, paid $920 million in fines to settle charges that it manipulated futures markets in Chicago.
Citigroup, which has been considered "too big to manage" since at least the financial crisis, was fined $400 million for its management's failure to effectively stay on top of its operations.
Morgan Stanley paid a relatively modest $60 million fine for failing to protect its customers' data. According to a pair of lawsuits, the bank failed to remove sensitive data from computers it decommissioned — including Social Security numbers, passport numbers, and account numbers.
Bank of America has kept its nose relatively clean of late, although Waqas Ali, who worked as a client relationship manager for the bank in Boston, did plead guilty to embezzling $1.5 million from one of his Texan clients.
- According to the complaint, Ali said that he targeted the family in question because they hadn't pressed charges when they were stolen from in the past.
The bottom line: In a sign of how deep the rot runs, hundreds of bank employees have been fired from Wells Fargo and JPMorgan Chase for abusing the government's coronavirus relief programs. So far, there's little sign that banks are shedding their reputation for being greedy to the point of criminality.
Transcripts show George Floyd told police "I can't breathe" over 20 times
Section2Newly released transcripts of bodycam footage from the Minneapolis Police Department show that George Floyd told officers he could not breathe more than 20 times in the moments leading up to his death.
Why it matters: Floyd's killing sparked a national wave of Black Lives Matter protests and an ongoing reckoning over systemic racism in the United States. The transcripts "offer one the most thorough and dramatic accounts" before Floyd's death, The New York Times writes.
The state of play: The transcripts were released as former officer Thomas Lane seeks to have the charges that he aided in Floyd's death thrown out in court, per the Times. He is one of four officers who have been charged.
- The filings also include a 60-page transcript of an interview with Lane. He said he "felt maybe that something was going on" when asked if he believed that Floyd was having a medical emergency at the time.
What the transcripts say:
- Floyd told the officers he was claustrophobic as they tried to get him into the squad car.
- The transcripts also show Floyd saying, "Momma, I love you. Tell my kids I love them. I'm dead."
- Former officer Derek Chauvin, who had his knee on Floyd's neck for over eight minutes, told Floyd, "Then stop talking, stop yelling, it takes a heck of a lot of oxygen to talk."
Read the transcripts via DocumentCloud.