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HomeMore Market Manipulation: Wall Street Out of Control
Posted by Larry Doyle on August 2nd, 2013 5:17 AM |
First it was Libor, then currencies, then commodities. Now the market manipulation game extends to a vehicle known as ISDA fix that is used as a benchmark for pricing only trillions of dollars of worth of transactions.
Dodd-Frank reformed Wall Street, right?
Bloomberg reports, Swaps Probe Finds Banks Manipulated Rate at Expense of Retirees,
U.S. investigators have uncovered evidence that banks reaped millions of dollars in trading profits at the expense of companies and pension funds by manipulating a benchmark for interest-rate derivatives.
Recorded telephone calls and e-mails reviewed by the Commodity Futures Trading Commission show that traders at Wall Street banks instructed ICAP Plc brokers in Jersey City, New Jersey, to buy or sell as many interest-rate swaps as necessary to move the benchmark rate, known as ISDAfix, to a predetermined level, according to a person with knowledge of the matter. (more…)
