Sign in to follow this  
Followers 0
bostonangler

FX Traders Criminally Charged With Currency Rigging

8 posts in this topic

Three FX Traders Criminally Charged With Currency Rigging

Jan 10, 2017 4:46 PM

Moments ago, U.S. prosecutors charged three traders who made up the infamous “Cartel” currency rigging chat room, and who were at the heart of a criminal investigation that has ensnared the world’s biggest banks over the rigging of currency rates.

Richard Usher, formerly head of G10 spot trading at JPMorgan, Rohan Ramchandani, formerly of Citigroup and Chris Ashton, formerly of Barclays, were indicted Tuesday for conspiring to fix prices. They’re all outside the U.S. and will have to be extradited unless they surrender voluntarily.

Richard Usher

As first reported back in 2013 when the FX rigging scandal broke out, the three used an online chatroom they dubbed ‘The Cartel’ to coordinate the rigging of foreign-exchange benchmarks by sharing confidential customer information, according to the U.S. charge. Another member, Matt Gardiner, formerly of UBS Group AG, has been helping prosecutors build cases against the traders, Bloomberg reported earlier.

Citigroup, Barclays, JPMorgan and Royal Bank of Scotland Group Plc pleaded guilty in May 2015 to conspiring to rig currency rates. UBS Group AG received immunity from prosecution, but its conduct breached an earlier agreement over its role in manipulating benchmark interest rates.

The Cartel chatroom ran from at least December 2007 until January 2013, prosecutors have said in court papers. It was limited to specific euro/dollar traders, they said. Many conversations took place just before daily fixes, the brief windows of time when data providers take a snapshot of trading so they can set daily rates.

As Bloomberg noted previously, the charges make good on the government’s long-running promise it would hold individuals to account in the case. As far back as September 2014, then-Attorney General Eric Holder said charges against traders were imminent.

Those efforts were hampered by issues of evidence and lack of cooperators, people familiar with the matter told Bloomberg last year. Bloomberg published a series of articles in 2013 exposing how the world’s biggest banks were colluding to rig foreign exchange rates.

Some prosecutions are moving forward. Over the past six months, two currency traders were charged and a third pleaded guilty to rigging allegations. This summer, Gardiner and Ashton were banned from the U.S. banking industry for life by the Federal Reserve, which also imposed a $1.2 million fine on Ashton.

Unlike the US, the U.K. Serious Fraud Office dropped its investigation into currency rigging last year citing insufficient evidence for a realistic prospect of conviction. The agency interviewed 19 individuals as part of its probe, according to a freedom-of-information request by Bloomberg in August, including four under caution. Interviews under caution generally mean the person is being treated as a suspect.

Some more details from Bloomberg for those unfamiliar with the story:

Citigroup, Barclays, JPMorgan and Royal Bank of Scotland Group Plc pleaded guilty in the U.S. in May 2015 to conspiring to rig currency rates. UBS received immunity from prosecution in the currency case, but its conduct breached an earlier agreement over its role in manipulating benchmark interest rates.

During the banks’ Jan. 5 sentencing, a federal judge in Connecticut urged the Justice Department to pursue individuals in the cases.

“Mischief will be best deterred if the people responsible are not only fired but that any compensation made to them that was triggered by the wrongful conduct, for example bonuses, are clawed back or disgorged,” U.S. District Judge Stefan R. Underhill said. “Frankly I would encourage the government to consider prosecution of individuals.”

http://www.zerohedge.com/news/2017-01-10/three-cartel-fx-traders-criminally-charged-currency-rigging

4

Share this post


Link to post
Share on other sites

Corruption is everywhere.

I recently did a documentary voice over about the events leading up to

and after the 2007 - 2008 financial fiasco that we have yet to learn

a dam thing from. It is repeating itself again, and no one is paying attention to it

because many think the criminals will just be bailed out again. What a strange world.

 

Thanks BA

4

Share this post


Link to post
Share on other sites
On ‎1‎/‎11‎/‎2017 at 4:06 PM, Jim1cor13 said:

Corruption is everywhere.

I recently did a documentary voice over about the events leading up to

and after the 2007 - 2008 financial fiasco that we have yet to learn

a dam thing from. It is repeating itself again, and no one is paying attention to it

because many think the criminals will just be bailed out again. What a strange world.

 

Thanks BA

As I like to say, we do live in The United States of Amnesia! People don't remember what happened last month, never mind last decade. JMHO

B/A

5

Share this post


Link to post
Share on other sites
On ‎1‎/‎11‎/‎2017 at 4:06 PM, Jim1cor13 said:

Corruption is everywhere.

I recently did a documentary voice over about the events leading up to

and after the 2007 - 2008 financial fiasco that we have yet to learn

a dam thing from. It is repeating itself again, and no one is paying attention to it

because many think the criminals will just be bailed out again. What a strange world.

 

Thanks BA

100% AGREE

3

Share this post


Link to post
Share on other sites
On ‎1‎/‎13‎/‎2017 at 8:29 AM, bostonangler said:

As I like to say, we do live in The United States of Amnesia! People don't remember what happened last month, never mind last decade. JMHO

B/A

Big News....till the next Big News

0

Share this post


Link to post
Share on other sites
14 hours ago, caz1104 said:

Big News....till the next Big News

I hope we see big news about who is really behind the curtain.

 

B/A

4

Share this post


Link to post
Share on other sites
20 minutes ago, bostonangler said:

I hope we see big news about who is really behind the curtain.

 

B/A

I bet Monty Hall knows

2

Share this post


Link to post
Share on other sites
7 hours ago, bostonangler said:

I hope we see big news about who is really behind the curtain.

 

B/A

If that news came out, most would deny it and shame anyone who states it. Some things are too big to wrap

our heads around. ;)

1

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!


Register a new account

Sign in

Already have an account? Sign in here.


Sign In Now
Sign in to follow this  
Followers 0

  • Recently Browsing   0 members

    No registered users viewing this page.