Is forex market controlled by someone? - page 12
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Federal Reserve Said to Probe Banks Over Forex Fixing
The Federal Reserve is investigating whether traders at the world’s biggest banks rigged benchmark currency rates, raising the risk that firms will be penalized for lax controls as regulators look for wrongdoing.
The Fed, which supervises U.S. bank holding companies, is among authorities from London to Washington probing whether traders shared information that may have let them manipulate prices in the $5.3 trillion-a-day foreign-exchange market to maximize their profits, said a person with direct knowledge of the matter, asking not to be named because it’s confidential.
“The Fed has discretion whether to and how much to fine the banks if deficient controls or lack of supervision resulted in traders at these banks manipulating currency rates,” said Jacob S. Frenkel, a former federal prosecutor and now a lawyer at Shulman Rogers Gandal Pordy & Ecker PA in Potomac, Maryland.
The Fed punished firms for internal-control lapses last year as it worked with state and federal authorities on cases involving Iranian sanctions and botched derivatives bets. The foreign-exchange inquiry looks at benchmark WM/Reuters rates used by companies and investors around the world.
Those rates are determined by trades executed in a minute-long period called “the fix” at 4 p.m. in London each day. By concentrating orders in the moments before and during the 60-second window, traders can push the rate up or down, a process known in the industry as “banging the close.”
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Deutsche Bank Said to Suspend Trader in Currency Probe
Deutsche Bank suspended one trader who dealt in the Argentine peso and was based in the Americas, after identifying him through reviews of employees’ electronic communications using search terms negotiated with regulators late last year, said the person, who asked not to be identified because he’s not authorized to speak publicly on the matter.
Regulators around the world are examining possible fixing of currency rates in the $5.3 trillion-a-day market. At least a dozen banks have been contacted by authorities, and at least 12 traders have been suspended, put on leave or fired. The probes come after Bloomberg News reported in June that dealers at banks pooled information through instant messages and used client orders to move benchmark currencies.
German newspaper Welt said today that at least one trader was suspended for suspected manipulation. Klaus Winker, a spokesman for Deutsche Bank in Frankfurt, declined to comment.
Deutsche Bank has expanded its ban on the use of multibank chat rooms by its foreign-exchange business to cover all of its investment and transaction banking units as part of measures to prevent manipulation of foreign exchange. JPMorgan Chase & Co. (JPM) and Royal Bank of Scotland Group Plc have taken similar measures.
Allegations of foreign exchange price rigging is eroding trust in the finance industry, Deutsche Bank co-Chief Executive Officer Anshu Jain said in October.
source
more of the same..
Exclusive: FBI suspects front running of Fannie, Freddie in swaps market | Reuters
at it again...
is the Forex market controlled by someone - well it appears its this bunch
Deutsche, Citi feel the heat of widening FX investigation | Reuters
I agree with WR1. It is the big banks that control the FX market.
Banks, and what is worse, the ones giving the orders to banks. See Davos meetings : what is the purpose of such meetings? And they came to a level when they do not care if it is known what are they doing or not
whats the point of Davos? - good question
Skiing
and socialising
whats the point of Davos? - good question
Skiing
and socialising
Imagine Janet Yellen on the first picture and Ben on the second one
:):)
Imagine Janet Yellen on the first picture and Ben on the second one
maybe Davos isn't so great afterall
even if there is what at first appears to be a few free lunches
Anything that is about money is controlled by someone. Arguments like "there is too big a volume for someone to control it" are a tale for babies. They control the news, they control the rates (they even rig the rates), they control the brokers, what else is there left to control? And they do all that with our money