I did not want anything to go through (like the prosperity funds, …), until these “minions” are caught with their hands in the cookies jar. We need to get rid of anything dirty before we can move on… Worth waiting in my opinion
Investigators turn bankers into informants in forex probe – WSJ. 07.10.14.
+ Justice Department to reportedly charge banks, individuals over currency manipulation. 07.10.14.
(Posted @Starship Earth: The Big Picture, compiled by Rique Seraphico).
(Reuters) – U.S. investigators have turned several bank employees into informants to gather evidence against some of their colleagues in the probe of possible manipulation of currency markets, the Wall Street Journal reported, citing people familiar with the matter.
Britain’s Financial Conduct Authority (FCA) and U.S. regulators are investigating allegations that dealers at major banks colluded and manipulated key reference rates in the $5.3 trillion-a-day foreign currency market, the world’s biggest and least regulated.
Investigators from the U.S. Justice Department and Federal Bureau of Investigation (FBI) are preparing to seek criminal charges against individual traders as early as next month, the Journal said. (on.wsj.com/1qPzF5W)
Leslie Caldwell, head of the Justice Department’s criminal division, told Reuters last week it was using more body wires and wiretaps to gather evidence in investigations.
Caldwell also indicated that there may not be any prosecutions this year in the foreign exchange probe.
“I think it’s too early to tell. We’re looking at the evidence, and we’re still working very hard, and there is a lot left to do, so I think it’s too soon to say,” he said.
The Journal report said it isn’t clear which banks had secret informants cooperating with the government investigation.
Ethical standards in the foreign exchange market have been put under the spotlight since investigators in the United States, Europe and Asia started examining whether small groups of traders colluded to rig prices by sharing information about their clients’ orders.
The global inquiry has not yet concluded but the review has shaken the industry, with dozens of top dealers put on leave or fired and banks under pressure to sharpen up on supervising their traders. (Reporting by Arnab Sen in Bangalore; Editing by Gopakumar Warrier and Greg Mahlich).
02 – Justice Department to reportedly charge banks, individuals over currency manipulation. 07.10.14.
The Justice Department is planning to investigate and charge several of the world’s largest banks with crimes connected to the manipulation of currency exchanges, according to a published report.
According to The New York Times, federal prosecutors are planning to indict individual bank employees for currency manipulation, using instant messages as evidence. That is in contrast to recent investigations into securities-backed mortgage trading, which ended in multi-million dollar fines being paid by the banks themselves.
The Times reports that approximately a dozen financial institutions under investigation, including Deutsche Bank, Citigroup, JP Morgan Chase, Barclays, and UBS. Charges are expected to be filed against at least one bank before the end of the year, with several expected to plead guilty.
The Times also reports that any individuals charged in connection with currency manipulation would likely be traders and their immediate superiors, as opposed to chief executives of firms.
Meanwhile, the Wall Street Journal reported that American and British regulators are in talks with Deutsche Bank to resolve a probe into allegations that the firm manipulated the benchmark London interbank offered (Libor) interest rate to make money on trades. The Journal reports that the amount paid by Deutsche Bank could reach hundreds of millions of dollars.
The Justice Department has targeted several banks for investigation of actions connected to the 2008 financial crisis. Earlier this year, Bank of America paid $16.7 billion to settle charges that it misled investors into buying risky mortgage-backed securities. Similar investigations were settled with payouts of $13 billion from JP Morgan Chase in November 2013 and $7 billion from Citigroup this past July..
|Investigators turn bankers into informants in forex probe – WSJ|
(Adds comments from DOJ official) (Reuters) – U.S. investigators have turned several bank employees …