Photograph by Noriko Hayashi/Bloomberg
When Clients Come Second
As one scandal has followed another in the banking world, they’ve peeled off layers of secrecy to reveal a culture of collusion. Some of the most significant revelations came in a June story from inside the $5.3 trillion-a-day foreign exchange market. Liam Vaughan, Gavin Finch and Ambereen Choudhury revealed how traders at major banks colluded to set rates and front-run client orders. That story was followed by others that detailed how traders “banging the close” manipulated rates in a flurry of trades at 4 p.m. London time. Since Bloomberg first reported the story, regulators in Europe and the U.S. have opened an extensive investigation into currency trading, which has led to the suspension of top traders at banks including Citigroup Inc., JPMorgan Chase & Co. and Royal Bank of Scotland.