Big Banks Busted Massively Manipulating Foreign Exchange, Precious Metals ... And Every Other Market Washington's Blog
Regulators fined six major banks including Citigroup (C.N) and UBS
(UBSN.VX) a total of $4.3 billion for failing to stop traders from
trying to manipulate the foreign exchange market, following a year-long
global investigation.
HSBC (HSBA.L), Royal Bank of Scotland (RBS.L), JP Morgan (JPM.N) and
Bank of America (BAC.N) also face penalties resulting from the inquiry
that has put the largely unregulated $5 trillion-a-day market on a
tighter leash, accelerated the push to automate trading and ensnared the
Bank of England.
In the latest scandal to hit the financial services industry, dealers
shared confidential information about client orders and coordinated
trades to make money from a foreign exchange benchmark used by asset
managers and corporate treasurers to value their holdings. Dozens of
traders have been fired or suspended.
