The Rocky Road to Globalization

French companies are complaining that they pay huge fines to the US government when they do not comply with American law, but that France is not benefitting by reciprocal fines.  In the US, the policy has been to exact fines, big by the ordinary citizen’s standards, but the cost of doing business for most corporations.  There are no crimes charged.

Only when Credit Suisse was forced to plea one criminal charge as citizens and some lawmakers joined the hue and cry against big banks’ seeming immunity.  Promises made by the SEC and the Department of Justice helped the Swiss bank accept the charge.  They must have been told that the bank would not loose its 2 billion dollar pension business in the US if they pleased guilty.

US Representative Maxine Waters and Senator Elizabeth Warren demanded that the US Labor Department justify its exemption for Credit Suisse, enabling the bank to continue its pension business in the US despite its criminal status.

Hearings were held last January 15th.  Testimony about Credit Suisse’s corrupt culture was given by important people in finance around the globe.

The outcomeL  Instead of granting the ten-year exemption Credit Suisse had applied for, they were given a five-year exemption.  The criminal plea counted for almost nothing.

Do we want laws on the books that are not enforced?  Why exact a criminal plea if it is not enforced?   ANd where do these monies the government collects go?