Big Bank Traders Said to Rig Currency Rates to Profit Off Clients
By Liam Vaughan, Gavin Finch & Ambereen Choudhury - Jun 11, 2013 7:00 PM ETTraders at some of the world’s biggest banks manipulated benchmark foreign-exchange rates used to set the value of trillions of dollars of investments, according to five dealers with knowledge of the practice.
Employees have been front-running client orders and rigging WM/Reuters rates by pushing through trades before and during the 60-second windows when the benchmarks are set, said the current and former traders, who requested anonymity because the practice is controversial. Dealers colluded with counterparts to boost chances of moving the rates, said two of the people, who worked in the industry for a total of more than 20 years.
AIG Financial Products Probed By Ben Lawsky For New Alleged Risk Failures
Singapore Regulator Said to Plan Bank Reprimand on Rates
By Andrea Tan, Gavin Finch & Sanat Vallikappen - Jun 13, 2013 6:07 AM ET
The Singapore Foreign Exchange Market Committee, which includes the Monetary Authority of Singapore and banks, plans to separately announce changes to the rate-setting process on the same day, two of the people said yesterday, asking not to be identified before the announcements are made.
BBC NEWS: Libor scandal: Can we ever trust bankers again? Posted: 06/11/2013
As Britain awaits a major report by the Parliamentary Commission on Banking Standards, the BBC's Business Production team, in partnership with the Open University, asks what went wrong with the system and can we ever trust bankers again?