Cartel Power: Megabanks Gain Ground Despite Fines

[unhappycamper]

http://www.spiegel.de/international/business/megabanks-like-deutsche-bank-gaining-power-despite-cartel-fines-a-937880.html



Authorities around the world are taking action against large banks for questionable practices including collusion and rate manipulation, but the power of these financial institutions continues to grow. Germany's Deutsche Bank in particular finds itself under fire.

Cartel Power: Megabanks Gain Ground Despite Fines
By Sven Böll, Martin Hesse, Christoph Pauly and Anne Seith
December 10, 2013 – 12:20 PM

German Finance Minister Wolfgang Schäuble recently gave a German banker the most brutal lesson to date -- delivered in a series of apparently incidental comments. At a press conference last Thursday afternoon, Schäuble launched into one of his notorious lectures on sound fiscal policy in times of crisis.

But then, finally, he had an opportunity to air his frustration over the incorrigible banker caste. A journalist asked Schäuble about his response to recent comments by Deutsche Bank co-CEO Jürgen Fitschen. The previous day, Fitschen had accused Schäuble of irresponsibility and populism, because the finance minister had insinuated that the banks were still bypassing financial industry regulations.

"I don't know if Herr Fitschen has understood what I mean," Schäuble complacently replied. He also noted that he had only recently reminded the bank executive that the financial crisis had not been caused by politicians. Then, as if he hadn't already sufficiently lambasted one of the country's leading bankers, Schäuble added: "If Herr Fitschen carefully reviews his statement, he will undoubtedly come to the conclusion that he is incorrect in this matter." And Fitschen has undeniably adopted the wrong tone, he said.

The head of the venerable Deutsche Bank reprimanded like a schoolboy? Ouch.