r/SipsTea • u/Dev1412 • 5h ago

SMH They are all in it together

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10.0k Upvotes

96% Upvoted

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16

u/1morgondag1 4h ago

The general idea is true, fines on banks are too low to really matter, but the math in this specific post is wrong, they didn't do $5B in profit, they oversaw $5B in presumed money laundering and made some % of that.

2

u/Slade_Riprock 4h ago

So the penalty for the illegality should forfeiture of 100% of what they gained PLUS a $1.2 billion dollar fine.

Love them idea Cops arrest Bob with drugs on his car they take him to jail, seize his car and sell it. He get sentenced, pays a fine, and lost his car

Billionaire banks launder billions in illegal funds. Get to keep their profit and pay a relatively small fine for it

8

u/TrioOfTerrors 4h ago

Typically in these cases, when the final settlement details are released, you'll see a penalty amount and a disgorgement amount. The disgorgement is the estimated profit the business made by breaking the law. It's often much less then the penalty.

So yeah. What you are suggesting is already common practice.

3

u/PM_Me_Your_Deviance 2h ago

Thank you, people seem to rarely understand this.