The European Commission has fined five banks, including the anti-Bitcoin JP Morgan, a total of over €1 billion for currency rigging. Traders clubbed together into ‘cartels’ to manipulate the foreign exchange market between 2007 and 2013.
You Can Trust The Big Banks… To Help Themselves
The “Banana Split” cartel involved traders from Barclays, RBS, Citigroup, and JP Morgan, which face penalties of €811 million in total. Traders from Barclays and RBS traders, along with MUFG, were also in the “Essex Express” cartel, and received €259 million in fines.
Swiss bank, UBS, was also involved but avoided financial penalties for
grassing alerting the authorities to the cartel’s existence.
The traders used online chatrooms to exchange trading plans and co-ordinate strategies. This enabled them to “make informed market decisions on whether to sell or buy the currencies they had in their portfolios and when.”
Competition Commissioner, Margrethe Vestager, said the banks had “undermined the integrity of the sector…