Monday, May 25, 2015
Barclays is among a host of global lenders being investigated by the New York banking regulator for tweaking computer programmes on its foreign exchange trading platform to rig markets.
The probe into Barclays and Germany’s Deutsche Bank has been going on since last year, with monitors installed by the New York Department of Financial Services (NYDFS) to gather evidence.
But the investigation has gathered momentum, and now includes a collection of the world’s biggest banks including Goldman Sachs, BNP Paribas, Credit Suisse, and Societe Generale.
Last night experts said the allegations would ‘beg even more serious questions’ about these giants if they are proved to be true.
Several employees at Barclays have been called in to give evidence to the New York watchdog as the investigation reaches an advanced stage.
Barclays has already been hit with a £260m fine from the NYDFS last week as part of its £1.5bn settlement with UK and US regulators over the foreign exchange scandal.
But it is braced for another huge penalty over these separate allegations.
The bank has set aside just over £2bn in total to pay Forex fines, meaning it has around £500m left over.
The U.S. Justice Department has recently granted UBS immunity in a criminal investigation of “manipulation of, or fraud in” the gold and silver markets. Why a serious Justice Department investigation now? Precious metals expert Bill Murphy says, “I am so skeptical after all these years, and it’s a question of where they go with this. If they are just talking about the gold fix itself—big deal. The ramification of how they are interfering with the markets all the time is the real issue. Why are they doing this now? Well, probably because it is so obvious, and they been doing it in so many other markets they feel compelled to do something, so they are going here. . . . This is going to effect a lot of people, if I am correct, when this market blows up. Maybe they see something coming with allocated accounts and the gold isn’t there. . . . They know it’s coming, and maybe they are trying to preempt something here so they don’t look so bad.”
Labels: BILL MURPHY
Sunday, May 24, 2015
Wall St for Main St welcome back Dr Mark Thornton! He is an Austrian Economist and a Senior Fellow at the Mises Institute. In this podcast, we followed up our discussion on the "Skyscraper Curse" from our previous podcast. We also talked about the 2008 financial crisis and if the economic would be different if the government and central banks did not intervene. Plus much more!
Labels: Dr. Mark Thornton