It&#x27;s not the regulators, it&#x27;s the prosecutors in New York, who have jurisdiction over the European banks since USD transactions are cleared there.<p>The problem is that banks absolutely cannot afford to risk going to court, since losing a case could mean losing their ability to deal in USD, which would be the end for them. That means that the banks <i>must</i> settle any case brought by the prosecutors. The prosecutors in New York have used this leverage to squeeze billions in settlements from the European banks. The &quot;justice&quot;system has basically turned into what amounts to a protection racket.