Traders Said to Rig Currency Rates to Profit Off Clients
Source: Bloomberg Businessweek
Traders at some of the worlds biggest banks manipulated benchmark foreign-exchange rates used to set the value of trillions of dollars of investments, according to five dealers with knowledge of the practice.
Employees have been front-running client orders and rigging WM/Reuters rates by pushing through trades before and during the 60-second windows when the benchmarks are set, said the current and former traders, who requested anonymity because the practice is controversial. Dealers colluded with counterparts to boost chances of moving the rates, said two of the people, who worked in the industry for a total of more than 20 years.
The behavior occurred daily in the spot foreign-exchange market and has been going on for at least a decade, affecting the value of funds and derivatives, the two traders said. The Financial Conduct Authority, Britains markets supervisor, is considering opening a probe into potential manipulation of the rates, according to a person briefed on the matter.
The FX market is like the Wild West, said James McGeehan, who spent 12 years at banks before co-founding Framingham, Massachusetts-based FX Transparency LLC, which advises companies on foreign-exchange trading, in 2009. Its buyer beware.
Read more: http://www.businessweek.com/news/2013-06-11/traders-said-to-rig-currency-rates-to-profit-off-clients
Wolf Frankula
(3,602 posts)Tho' a casino that was that crooked would be closed by a gaming commission. If it was OC related, the managers would be in a box.
Wolf
sikofit3
(145 posts)Diclotican
(5,095 posts)jakeXT
It is a reason our economical system is the mess it is - when you can shat, steal - and plunder as you go - for more than 20 years.. What a charade "capitalism" is today.... The more you steal - the more you plunder, you greater a person you are... Morality is out the window - and the thief's run the game...
They deserve to be put in a 3x5 meter cage - for the rest of their miserable life - and to pay back what they have been earning - all of it... Not just a few to make a statement - but really to clean up the whole business - we need to clean it up - or it will break down - as it did last time around
And we also need to regulate the ASS out of them... And punish the ones who is responsible to make it happened so hard, that it will never be another try - at least not for a couple of centuries... It is proven, without doubt - that un-regulated capitalism are not working - if capitalism is to survive - it have to be controlled - regulated and thief's punished according to the crime... The bigger the crime - the bigger the punishment - both for the traders - but also for the banks who is responsible for it..
Diclotican
mbperrin
(7,672 posts)I've avoided them since 1978, and I'm better off for it.
That said, it looks like we need some rope and some available telephone poles, since regular justice won't touch these miscreants.
blkmusclmachine
(16,149 posts).
vinny9698
(1,016 posts)He said it was all a big con to rip off the small investors. Charging outrageous fees, churning, pushing deals that give the brokers large commissions, insider trading, taking care of large investors at the expense of small investors.
That's why they want to get their hands on Social Security to run their scams and reap large profits for themselves.