What If the BOE Did Condone FX Market-Rigging?

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Feb. 7 (Bloomberg) -- Bloomberg News’ Liam Vaughan reports on the widening probe of currency manipulation and the alleged involvement of the Bank of England on Bloomberg Television’s “Market Makers.”


Tell us about it.

The story we publish today talks about a meeting that took place in april 2012. about a dozen of the most senior traders at the world's biggest banks met up with representatives from the bank of england.

It was a regular meeting.

There was a discussion about how they trade in how they communicate with each other.

The context was this was in the middle of the libor scandal when the world's biggest banks were being investigated for rigging interest rates.

The number of traders raised the issue of the fact that they regularly communicate each other with online chat rooms and orders.

Our understanding is that the bank of england said they were fairly relaxed about the practice.

They tell banks to continue as they were.

They said they were not offer any guidance.

Most importantly, he just sat on it.

They decided not to escalate the matter.

Here we are two months later in the mid-of a huge global investigation.

The very centers of the investigation are the practices outlined in the meeting.

Which obtains and/or traders are most affected by this revelation?

Take your pick.

The seven largest currency dealers in the world, ibo like citigroup, j.p. morgan, deutsche bank, have always suspended individuals or fired individuals as a result of currency investigations.

Citigroup and j.p. morgan in particular were part of a chat room that we now know had been given names like the mafia or the cartel.

That was the name they gave themselves.

What started out of an investigation in london has ray much read internationally.

If you look at the traders, six so far in new york.

It is a global thing.

The bankers and the lawyers whom i have spoken with that are directly or indirectly involved are very concerned.

As you well know, the libor investigation has resulted in several billion dollars of fines already.

What is this really is cover for these banks and traders?

What if the boe can be shown to have effectively condoned of this practice?

As you said, i guess it provides reasonable cover.

What we do not know is exactly what was discussed in a meeting compared to what practices actually take lays.

It is one thing for these guys to say we get on chat rooms and read regularly communicate.

They also said listen.

When we traded at exactly this point in time?

I cannot imagine that time the conversation came up in that meeting.

I guess the bank of england has a reasonable argument to say we condone certain practices.

Maybe we should done that.

We did not know the extent of what was going on.

Even if the bank of england should have escalated it, it is not mean the behavior of these traders was right with in the confines of the law.

If what they are doing is no advised -- is now advised to be illegal, the fact that the bank of england did not do anything about it i do not think will help them in the courts.

I am, for one, very

This text has been automatically generated. It may not be 100% accurate.


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