Cartel banks fined €1bln for forex rigging

Discussion in 'Wall St. News' started by mlawson71, May 17, 2019.

  1. The European Commission fined Citigroup Inc., Royal Bank of Scotland Group Plc, JPMorgan Chase & Co., Barclays and MUFG Bank a total of 1.07 billion euros ($1.2 billion) for colluding on FX rates, in practice rigging the foreign exchange market.

    Citigroup Inc. was fined 310.8 million euros, Royal Bank of Scotland Group Plc – 249.2 million euros, while JPMorgan Chase & Co. will have to pay 228.8 million euros.

    The three banks were part of the “Banana Split” cartel, along with Barclays, which also participated in the “Essex Express” cartel, where the other culprits were the Japanese MUFG Bank and RBS again.

    The total fines for the “Banana Split” cartel amount to 811 million euros, while for the “Essex Express” cartel – 258 million euros.

    The bank that reviled the cartels – the Swiss UBS will not pay financial penalties.
     
  2. wrbtrader

    wrbtrader

    According to the European Commission the market manipulations happened between 2007 and 2013. The investigation revealed that forex traders, while working for the banks, used online chat rooms to share trading plans and from time to time to coordinated trading strategies.\

    This has been going on since the birth of the internet...long before 2007. They just got better at catching these cartels in how they're using chat rooms or trade rooms to manipulate the Forex currency markets.

    Guess what, its also happening in Futures and Stocks. I wouldn't be surprise within the next few years they'll catch similar like cartels doing such in Futures and Stock chat rooms. Yet, some financial institutions have already started to jump ahead on that by putting a ban on its institutional traders from communicating in bloomber "internal" chat rooms.

    https://www.reuters.com/article/us-...r-chatroom-bans-sources-idUSBRE9BG0H420131217

    Yet, these cartels are not stupid. They now use normal apps like Whatsapp chat rooms and others via secret codes for rigging the markets. :(

    wrbtrader
     
    Onra and nooby_mcnoob like this.
  3. Presumably it's revealed. I find it hard to believe that you could get off scot-free if you simply reviled someone.