Banks Fined $3.4B for Rigging Market


jp-morganFive of the world’s largest banks – Citibank, JPMorgan Chase, RBS, HSBC, and UBS – were fined $3.4 billion in total by authorities in the U.K., U.S., and Switzerland for manipulating global currency markets. (Barclays is still under investigation.)

Traders at the banks allegedly conspired in chat rooms for years to manipulate currency markets at the expense of clients. Each day, roughly $5.3 trillion changes hands int eh global foreign exchange market, with 40 percent of them taking place in London. Read more.

{Andy Newscenter}


  1. If you thought that it was easy to rig the LIBOR rate, it is even easier to rig the currency markets. Similar to front running on the stock market, traders collude to have currency exchange rates around the 4 pm fix in London, with investors footing the bill. And unlike the stock market that is regulated by the SEC and NY Attorney General, the currency markets lack such regulation. Also, given its massive size ($5.3 trillion per day compared to the NYSE $61 billion per day, it is hard to keep track of who is doing what.