DOJ plans more actions against banks over money laundering

|By:, SA News Editor

"I think [banks] still need to do more," says Mythili Raman, who currently heads the DOJ's Criminal Division. "It's not as it our enforcement actions are over. There's more to come, and that suggests to me that there are still banks that haven't gotten the message."

HSBC was let go with just a $1.9B fine last year after admitting to violations, and a similar agreement was notched with Standard Chartered. Citigroup and JPMorgan were cited for deficient controls and say they are working to fix the issues. Concerns with M&T Bank's money-laundering program has been cited by the Fed as a reason to hold up the merger with Hudson City Bancorp.

"Bankers don't make good junior G-men," says the ABA's Rob Rowe.

Raman counters that the DOJ isn't interested in going after banks for one-off slips, but instead is looking for a pattern of problematic behavior (read up on HSBC).

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