Thursday, November 13, 2014

Global Banks Fined Billions for Rigging the Currency Markets

LONDON — Traders with such nicknames as the ‘‘Three Musketeers’’ and the ‘‘A-Team’’ plotted through Internet chat rooms to manipulate currency markets for years, profiting at the expense of clients and then congratulating themselves for their brilliance in profanity-laced banter, regulators said Wednesday, as they fined five banks $3.4 billion.

*   *   *

Citibank, JPMorgan Chase, Royal Bank of Scotland, HSBC Bank, and UBS agreed to the settlements with the US Commodity Futures Trading Commission, UK Financial Conduct Authority, and Swiss Financial Market Supervisory Authority. The British regulator said Barclays remains under investigation.  

*   *   *

Manipulation of the exchange rates has ‘‘a profound effect on the economy,’’ said Aitan Goelman, enforcement director for the Commodity Futures Trading Commission.

 -from the AP article in today's' newspapers by Danica Kirka and Marcy Gordon.  It is worth reading the entire article.  The article states that the Justice Department is conducting a criminal investigation and the the Federal Reserve is coordinating a "probe" with Justice and other agencies.  

I say go to it.

No comments: