US acting as global cop for financial crimes

Washington

HANDING out multibillion-dollar fines right and left to domestic and foreign financial giants, the United States has taken on the role of the unforgiving global policeman of the business world.

In stark contrast to the relative inertia of white-collar law enforcement in Europe, Washington most recently brought the hammer down on Deutsche Bank and Credit Suisse, which sold junk-filled, mortgage-backed securities ahead of the 2008 financial meltdown.

Deutsche Bank has agreed to a payout of US$7.2 billion, while Credit Suisse settled for US$5.3 billion to resolve the American authorities' allegations and avoid the lengthy headache of a trial.

Instead of dragging financial firms to…