Barclay's suspends Currency Traders

[Yasojack]

Time to start jailing these B'stards

oops should say Barclay's wheres those Mods when you need them?

BBC News - Barclays suspends currency traders

UK bank Barclays has suspended six traders as part of a probe into suggestions that currency markets could have been rigged, the BBC has learnt.

On Thursday, Royal Bank of Scotland suspended two traders in connection with the investigation.

The Financial Conduct Authority (FCA) probe is said to be at an early stage.

Of the six, some work in London and some in other parts of Barclays' global business, the BBC's chief economics correspondent Hugh Pym said.

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You only have to move the market a small amount for a small period, and that could be worth millions of dollars of profit for the banks”

Mark Taylor
Warwick Business School
Regulators around the world, including the UK's FCA, are investigating the currencies market and Barclays, RBS, Citigroup, Deutsche Bank and UBS have all confirmed that regulators have been in contact with them over the currency probe, though there is currently no evidence of wrongdoing.

On Friday, JP Morgan Chase added that it was also being questioned.

"These investigations are in the early stages and the firm is co-operating with the relevant authorities," JP Morgan said.

'Worth millions'
Citigroup issued a statement saying: "Government agencies in the US and other jurisdictions are conducting investigations or making inquiries regarding trading on the foreign exchange markets."

The global foreign exchange market is worth more than $5tn a day, and London is the most important hub, accounting for about 40% of all foreign-exchange trading.

Suspicions of exchange rate manipulation centre on a one-minute window of trading at 16:00 every day that is used to set exchange rates.

The suggestion is that traders colluded to push through high volumes of trades in the run-up to and during the window to influence rates.

"If some of the big players in the market got together and put through some very large trades - billions of dollars each - then that could affect the market," said Mark Taylor, a former forex trader who is now dean of Warwick Business School.

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Analysis

image of Hugh Pym
Hugh Pym
Chief economics correspondent, BBC News
The suspension of six traders by Barclays today, following news that RBS had done the same with two staff, confirmed that this is a wide-ranging investigation with the potential to hang over the City for some time.

Other banks have sent staff "on leave". There is no evidence of wrongdoing at this stage.

It is understood the investigation focuses on deals going back a few years and right up till this August.

That covers the tenure of the new breed of bank chief executives who have pledged to clean up their banks after the Libor scandal last year, which involved attempts to rig interest rates.

That provoked widespread condemnation of the banks as well as big fines - the last thing the City needs is another episode like that.

"It would take a huge amount of money to move the market, but you only have to move the market a small amount for a small period, and that could be worth millions of dollars of profit for the banks."

Manipulation
In a statement released alongside its quarterly results on Wednesday, Barclays said: "Various regulatory and enforcement authorities have indicated they are investigating foreign-exchange trading, including possible attempts to manipulate certain benchmark currency exchange rates or engage in other activities that would benefit their trading positions.

"The investigations appear to involve multiple market participants in various countries.

"Barclays Bank has received inquiries from certain of these authorities related to their particular investigations, is reviewing its foreign-exchange trading covering a several-year period through August 2013 and is co-operating with the relevant authorities in their investigations."

Barclays said that it did not yet know what the legal and financial impact from the inquiry would be.

Last year, Barclays, along with other international banks, was fined for manipulation of the Libor inter-bank lending rate.

In the case of Libor, there is also now a criminal investigation by the Serious Fraud Office.

Banks in the UK are also still setting aside billions to pay compensation for mis-sold payment protection insurance (PPI).

[Mr Lick]

Fannie Mae also chasing Barclays and co. for losses incurred over Libor.



Fannie Mae sues banks for $800m over Libor





Fannie Mae claims losses of $800m relating to the Libor scandal



Libor scandal

• Former trader charged over Libor
• Libor change responds to scandal
• EU proposals to take control of Libor
• Can we ever trust bankers again?

US mortgage giant Fannie Mae is suing nine banks including Barclays and Royal Bank of Scotland (RBS) over losses relating to the Libor scandal.

The mortgage financer is seeking more than $800m (£499m) in damages.

"Fannie Mae filed this action to recover losses it suffered as a result of the defendants' manipulation of Libor," a spokesman said.

Several banks have already admitted wrongdoing over the scandal, and have settled with regulators.

Libor refers to the London interbank offered rate, which is an interest rate used by many banks, mortgage lenders, and others to set the price of borrowing on trillions of dollars of financial contracts.

Several banks have indicated that they colluded to set the rate artificially low, which could have deprived lenders like Fannie Mae of higher profits.

The nine banks being sued by Fannie Mae are Barclays, RBS, Rabobank, UBS, Bank of America, Citigroup, Credit Suisse, Deutsche Bank and JP Morgan Chase.

Of those, Barclays , RBS, Rabobank and UBS have previously settled with regulators over similar allegations.

Barclays was fined £290m by UK and US authorities in 2012, while RBS was fined £390m earlier this year.

Rabobank received a fine of £662m from regulators earlier this week.

A string of international banks have been implicated in the affair and several criminal charges have been brought against traders.

It is also not the first time banks have been sued over Libor manipulation.

In March, the other major US mortgage financer Freddie Mac sued more than a dozen banks.


BBC News - Fannie Mae sues banks for $800m over Libor

[Yasojack]

isn't Fanie thats has seen its shares rise by 1300% since the crisis

[wasabi]

So how did this affect the baht exchange rate,did expats win or lose on their transfer deals.

[Bettyboo]

I know that Socal hates fanny.

Will any of them go to jail, or will it be a fine that's passed onto the customers...

[Yasojack]

HSBC 'part of worldwide foreign exchange probe' | Bangkok Post: news

HSBC 'part of worldwide foreign exchange probe'
Published: 4 Nov 2013 at 15.49Online news: World
Banking giant HSBC said on Monday that it was being investigated along with other banks as part of a worldwide probe into the possible manipulation of foreign exchange trading.


This file photo, taken on March 4, 2013, shows the UK headquarters of HSBC at Canary Wharf in London

It comes as the bank, the biggest in Europe, announced a 28-percent jump in quarterly net profit to $3.2 billion (2.37 billion euros).

The London-based bank said in its earnings statement that British regulator, the Financial Conduct Authority, "is conducting investigations alongside several other agencies in various countries into a number of firms, including HSBC, relating to trading on the foreign exchange market".

HSBC added that it was "cooperating with the investigations which are at an early stage".

HSBC joins British banks Barclays and Royal Bank of Scotland (RBS) in confirming that they are part of the investigations.

Deutsche Bank, Swiss lender UBS and US pair Citi and JPMorgan Chase have also come forward to say that they are co-operating with regulators over the affair.

According to sources, Barclays has suspended six traders while it investigates the possible manipulation of foreign exchange markets and RBS has suspended two.

The banking sector has already been shaken by a rigging scandal related to the Libor, a benchmark interest rate for lending between banks which also determines numerous financial and interest rate contracts around the world.

That scandal has already resulted in more than $3.5 billion in government settlements with financial institutions, as well as ongoing criminal prosecutions of several traders involved.