Could Be the Last Straw for the Banks
The recent activity in the banking sector reminds us that what we know -- or, more accurately, what we believe we know -- doesn't always matter. For a time, this sector seemed impervious to any and all bad news. Ratings-agency downgrades? No problem. The Goldman Sachs (GS) Muppet-gate fiasco? The Facebook (FB) initial public offering foul-up? JPMorgan Chase's (JPM) London Whale loss is greater than expected? A LIBOR scandal that will lead to numerous lawsuits? No problem on all counts.
Last week's outrageous charges against HSBC were the icing on the cake. In case you missed it, HSBC admitted to laundering money for drug cartels, to dealing with a bank with alleged terrorist ties and to performing thousands of transactions designed to circumnavigate U.S. sanctions. These allegations represent a new low -- but the banks aren't hitting new lows. Instead, they've been grinding higher....349 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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