A sign is seen outside a Royal Bank of Scotland building in central London January 28, 2014.
Credit: Reuters/Paul Hackett
(Reuters) – Royal Bank of Scotland (RBS.L) has suspended a senior currency trader in London, bringing to three the number of traders suspended by the bank since a global investigation into allegations of rigging reference exchange rates was launched last year.
Ian Drysdale was put on leave earlier this week and has now been suspended, a source familiar with the matter said.
This follows the suspension of Julian Munson and Paul Nash in October last year.
RBS declined to comment, and Drysdale could not be reached for comment.
On Tuesday RBS said it was reviewing rules on currency dealers trading with their own money.
The global probe into online communications between traders and allegations of manipulating benchmark currency rates known as “fixings” has seen more than 20 traders at many of the world’s biggest banks put on leave, suspended or fired.
Royal Bank of Scotland has paid $275m to settle a class action suit relating to the way it sold mortgage-based securities in 2008. Photograph Facundo Arrizabalaga/EPA
Another currency trader at Royal Bank of Scotland has been suspended as regulators around the world continue their investigation into potential rigging of the £3tn a day foreign exchange market.
The bank would not comment on reports that Ian Drysdale had been placed on leave earlier in the week and was now suspended, becoming the third RBS forex trader to be suspended.
RBS is just one of a handful of banks suspending or firing traders amid allegations that Martin Wheatley, the chief executive of the Financial Conduct Authority, has said are every bit as bad as those about Libor, the benchmark interest rate.
As many as 20 foreign exchange traders are thought to have been asked to stay away from their roles in banks around the world as a result of the investigations which are thought to be at the early stages.
The 81% taxpayer-owned bank is also continuing to take hits to clean up past issues, with a $275m (£165m) payout on Wednesday to settle a class action suit relating to the way it sold mortgage-based securities during the 2008 banking crisis.
15 February 2014: I feel that this is one of the most important investigations I’ve ever done. If my findings are correct, each of us might soon experience a severe, if not crippling blow to our personal finances, the confiscation of any wealth some of us have been able to accumulate over our lifetimes, and the end of the financial world as we once knew it. The evidence to support my findings exists in the trail of dead bodies of financial executives across the globe and a missing Wall Street Journal Reporter who was working at the Dow Jones news room at the time of his disappearance.
If the bodies were dots on a piece of paper, connecting them results in a sinister picture being drawn that involves global criminal activity in the financial world the likes of which is almost without precedent. It should serve as a warning that we are at the precipice of something so big, it will shake the financial world as we know it to its core. It seems to illustrate the complicity of big banks and governments, the intelligence community, and the media.
Although the trail of mysterious and bizarre deaths detailed below begin in late January, 2014, there are others. Not only that, there will be more, according to sources within the financial world. Based on my findings, these are not mere random, tragic cases of suicide, but of the methodical silencing of individuals who had the ability to expose financial fraud at the highest levels, and the complicity of certain governmental agencies and individuals who are engaged in the greatest theft of wealth the world has ever seen.
It is often said that life imitates art. In the case of the dead financial executives, perhaps death imitates theater, or more specifically, the movie The International, which was coincidentally released in U.S. theaters exactly five years ago today.
We are told by the media that the untimely deaths of these young men and men in their prime are either suicides or tragic accidents. We are told what to believe by the captured and controlled media, regardless of how unusual or unlikely the circumstances, or how implausible the explanation. Such are the hallmarks of high level criminality and the involvement of a certain U.S. intelligence agency intent on keeping the lid on money laundering on a global scale.
Obviously, it is important that this topic is approached with the utmost respect for the families of those who died, that they be allowed to grieve for the loss of their loved ones in private. However, it is extremely important that the truth about what is happening in the global financial arena is not kept from us, as we will also be victims of a different nature.
The missing and the dead: a timeline
The following is provided as a chronological list of those who have gone missing or been found dead under mysterious circumstances. It is important to note that this list consists of names of the most recent incidents. There are more that extend back through 2012 and beyond.
January 11, 2014
MISSING:David Bird, 55, long-time reporter for the Wall Street Journal working at the Dow Jones news room, went for a walk on Saturday, January 11, 2014 near his New Jersey home and disappeared without a trace. Mr. Bird was a reporter of the oil and commodity markets which happened to be under investigation by the U.S. Senate Permanent Subcommittee on Investigations for price manipulation.
January 26, 2014
DECEASED: Tim Dickenson, a U.K.-based communications director at Swiss Re AG, was reportedly found dead under undisclosed circumstances.
DECEASED:William Broeksmit, 58, former senior manager for Deutsche Bank, was found hanging in his home from an apparent suicide. It is important to note that Deutsche Bank is under investigation for reportedly hiding $12 billion in losses during the financial crisis and for potentially rigging the foreign exchange markets. The allegations are similar to the claims the institution settled in 2013 over involvement in rigging the Libor interest rates.
January 27, 2014
DECEASED: Karl Slym, 51, Managing director of Tata Motors was found dead on the fourth floor of the Shangri-La hotel in Bangkok. Police said he “could” have committed suicide. He was staying on the 22nd floor with his wife, and was attending a board meeting in the Thai capital.
January 28, 2014
DECEASED: Gabriel Magee, 39, a JP Morgan employee, died after reportedly “falling” from the roof of its European headquarters in London in the Canary Wharf area. Magee was vice president at JPMorgan Chase & Co’s (JPM) London headquarters.
Gabriel Magee, a Vice President at JPMorgan in London, plunged to his death from the roof of the 33-story European headquarters of JPMorgan in Canary Wharf. Magee was involved in “Technical architecture oversight for planning, development, and operation of systems for fixed income securities and interest rate derivatives” based on his online Linkedin profile.
It’s important to note that JPMorgan, like Deutsche Bank, is under investigation for its potential involvement in rigging foreign exchange rates. JPMorgan is also reportedly under investigation by the same U.S. Senate Permanent Subcommittee on Investigations for its alleged involvement in rigging the physical commodities markets in the U.S. and London.
Regarding the initial reports of his death, journalist Pam Martens of Wall Street on Parade astutely exposed the controlled, scripted details of the media accounts surrounding Magee’s death in an article written on February 9, 2014. Ms. Martens writes:
“According to numerous sources close to the investigation of Gabriel Magee’s death, almost nothing thus far reported about his death has been accurate. This appears to stem from an initial poorly worded press release issued by the Metropolitan Police in London which may have been a result of bad communications between it and JPMorgan or something more deliberate on someone’s part.” [Emphasis added].
Ms. Martens also notes:
No solid evidence exists currently to suggest that the death was a suicide. In fact, there is a strong piece of evidence pointing in the opposite direction. Magee had emailed his girlfriend, Veronica, on the evening of January 27 to say that he was about to leave the office and would see her shortly. [Emphasis added].
Based on information she developed, it appears likely that Magee did not meet his fate on the morning his body was discovered, but hours earlier. Considering the possibility that Magee might now have died in the manner publicized, Ms. Martens offers speculation, and notes it as such:
If Magee became aware that incriminating emails, instant messages, or video teleconferences were not turned over in their entirety to Senate investigators or Justice Department prosecutors, that might be reason enough for his untimely death.
Looking at the death of Magee in the context of a larger conspiracy, it is difficult not to suspect foul play and media manipulation.
January 29, 2014
DECEASED: Mike Dueker, 50, who had worked for Russell Investment for five years, was found dead close to the Tacoma Narrows Bridge in Washington State. Dueker was reported missing on January 29, 2014. Police stated that he “could have” jumped over a fence and fallen 15 meters to his death, and are treating the case as a suicide.
Before joining Russell Investments, Dueker was an assistant vice president and research economist at the Federal Reserve Bank of St. Louis from 1991 to 2008. There he served as an associate editor of the Journal of Business and Economic Statistics and was editor of Monetary Trends, a monthly publication of the St. Louis Federal Reserve.
In November 2013, the New York Times reported that Russell Investments was one of several investment companies that were under subpoena from New York State regulators investigating potential “pay-to-play” schemes involving New York pension funds.
February 3, 2014
DECEASED: Ryan Henry Crane, 37, was the Executive Director in JPMorgan’s Global Equities Group. Of particular relevance is that Crane oversaw all of the trade platforms and had close working ties with the now deceased Gabriel Magee of JPMorgan’s London desk. The ties between Mr. Crane and Mr. Magee are undeniable and outright troublesome. The cause of death has not yet been determined, pending the results of a toxicology report.
February 6, 2014
DECEASED: Richard Talley, 57, was the founder and CEO of American Title, a company he founded in 2001. Talley and his company were under investigation by state insurance regulators at the time of his death. He was found in the garage of his Colorado home by a family member who called authorities. Talley reportedly died from seven or eight “self-inflicted” wounds from a nail gun fired into his torso and head.
The enormity of the lie
One must look back far enough to understand the enormity of the lie and the criminality of bankers and governments alike. We must understand the legal restraints that were severed during the Clinton years and the congress that changed the rules regarding financial institutions. We must understand that the criminal acts were bold and bipartisan, and were designed to consolidate wealth through the destruction of the middle class. All of this is part of a much larger plan to establish a one world economy by “killing” the U.S. dollar and consequently, eradicating the middle class by a cabal of globalists that existed and continue to exist within all sectors of our government. The results will be crippling to not just the United States, but the entire Western world.
What began decades ago is now becoming more transparent under the Obama regime. Perhaps that’s the transparency Obama promised, for we’ve seen little else in terms of transparency with regard to the man known as Barack Hussein Obama. For those not locked into the captured corporate media, we’re starting to see the truth emerging. The truth is that we’ve been living under a giant Ponzi scheme and we, the American citizens, are the suckers. As illustrated by the list of dead bankers above, however, the power elite need a bit more time before the extent of their criminality is revealed. The need a bit more time to transfer the remaining wealth from middle-class America to their private coffers. Timing is everything, and a magic act only works when all props are in place before the illusion is performed. Only when their timing is right will the slumbering Americans realize the extent of the illusion by which they’ve been entranced, at which time they will be forced into submission to accept a financial reset that will ultimately subjugate them to a global economy. I contend that this is the reason for the recent spate of deaths, for those who met their tragic and untimely end had the ability to expose this nefarious agenda by what they knew or discovered, or what they would reveal under subpoena and the damage they could cause to the globalist financial agenda.
(Reuters) – The savings of the European Union’s 500 million citizens could be used to fund long-term investments to boost the economy and help plug the gap left by banks since the financial crisis, an EU document says.
The EU is looking for ways to wean the 28-country bloc from its heavy reliance on bank financing and find other means of funding small companies, infrastructure projects and other investment.
“The economic and financial crisis has impaired the ability of the financial sector to channel funds to the real economy, in particular long-term investment,” said the document, seen by Reuters.
The Commission will ask the bloc’s insurance watchdog in the second half of this year for advice on a possible draft law “to mobilize more personal pension savings for long-term financing”, the document said.
Banks have complained they are hindered from lending to the economy by post-crisis rules forcing them to hold much larger safety cushions of capital and liquidity.
At first we thought Reuters had been punk’d in its article titled “EU executive sees personal savings used to plug long-term financing gap” which disclosed the latest leaked proposal by the European Commission, but after several hours without a retraction, we realized that the story is sadly true. Sadly, because everything that we warned about in “There May Be Only Painful Ways Out Of The Crisis” back in September of 2011, and everything that the depositors and citizens of Cyprus had to live through, seems on the verge of going continental. In a nutshell, and in Reuters’ own words, “the savings of the European Union’s 500 million citizens could be used to fund long-term investments to boost the economy and help plug the gap left by banks since the financial crisis, an EU document says.” What is left unsaid is that the “usage” will be on a purely involuntary basis, at the discretion of the “union”, and can thus best be described as confiscation.
The source of this stunner is a document seen be Reuters, which describes how the EU is looking for ways to “wean” the 28-country bloc from its heavy reliance on bank financing and find other means of funding small companies, infrastructure projects and other investment. So as Europe finally admits that the ECB has failed to unclog its broken monetary pipelines for the past five years – something we highlight every month (most recently in No Waking From Draghi’s Monetary Nightmare: Eurozone Credit Creation Tumbles To New All Time Low), the commissions report finally admits that “the economic and financial crisis has impaired the ability of the financial sector to channel funds to the real economy, in particular long-term investment.”
The solution? “The Commission will ask the bloc’s insurance watchdog in the second half of this year for advice on a possible draft law “to mobilize more personal pension savings for long-term financing“, the document said.”
Mobilize, once again, is a more palatable word than, say, confiscate.
And yet this is precisely what Europe is contemplating:
LONDON (Reuters) – Barclays said it would axe up to 12,000 jobs this year even as it raised bonuses for investment bankers, prompting fury among politicians and unions who said it had not learned the lessons of the financial crisis.
Britain’s third-biggest bank said up to 9 percent of employees could go, including 7,000 in Britain, as it tries to lower costs. The cuts are not concentrated in any one business area.
It said it paid 2.4 billion pounds ($3.9 billion) in incentive awards last year, raising bonuses at the investment bank by 13 percent despite a slump in its profits. The average bonus for the investment bank’s 26,200 staff was 60,100 pounds.
Critics of the bonus hike said it showed Britain’s biggest banks were still failing to heed the lessons of a financial crisis caused by dangerous risk taking and excessive pay.
“Today Barclays has stuck two fingers up to hard-pressed families across Britain by announcing another multi-billion pound bonus pool,” said Frances O’Grady, General Secretary of the Trades Union Congress.
Barclays Chief Executive Antony Jenkins, who took the helm in 2012 after an interest rate rigging scandal, has vowed to improve culture and standards at the bank while also reducing risk and strengthening the balance sheet.
But its investment bank profits slumped 37 percent last year to 2.5 billion pounds and analysts voiced concern about whether Jenkins can reach his target of a return on equity above 11.5 percent by 2016.
Getting costs down looked more challenging than expected, they said, while increased regulatory pressure and a grim outlook for fixed-income revenue made the target on returns look difficult to achieve.
Barclays shares were down 5 percent at 261 pence by 7.55 a.m. ET, underperforming a 0.7 percent rise by an index of European banks.
“WE NEED THE BEST PEOPLE”
The higher bonuses lifted the compensation-to-income ratio in the investment bank to 43.2 percent last year from 40 percent in 2012. Jenkins, who gave up his own bonus for 2013, said he still aimed for a ratio in the “mid-30s” across the bank.
He defended the bigger bonus pot, saying the bank had to recruit the best staff to compete with global rivals and continued to have “constructive” talks with investors over pay.
“We need to recruit people from Singapore to San Francisco. We need the best people in the bank to drive long-term sustainable returns for our shareholders,” Jenkins told reporters on a conference call.
“I understand that there will be some (people) who feel that this decision is the wrong one for Barclays. But it is the decision of the board and myself that this entirely is the right decision for the group and in the long-term interests of shareholders,” he said.
But business leaders’ group the Institute of Directors said the bank’s bonus policy raised the question of whether it was being run for its shareholders, or its staff.
It is not easy for one bank to anger more people with one announcement than what Barclays did in the past 24 hours. In one fell swoop, the British bank infuriated shareholders after announcing dismal earnings (an adjusted Q4 profit of about 200 million pounds and a statutory profit of less than 100 million as investment banking income slumped 37% as income fell 9% to 10.7 billion due to a fall in fixed income, and it took further charges related to a cleanup of the banking industry in the wake of the 2008 financial crisis) which sent the share price sliding, it then pissed off UK workers and taxpayers after it announced it would hike investment bank bonuses by 13% despite the abovementioned profit slump, and finally it crushed 9% of its workforce, or 12,000 workers, who are set to prepare pink slips as the bank “streamlines.”
Barclays said 820 senior roles would go, and half of those were cut at the investment bank in the last two weeks. It cut 7,650 jobs last year, including 1,400 in the investment bank, as part of a restructuring unveiled a year ago by Jenkins to cut 1.7 billion pounds of annual costs. There were 139,600 Barclays employees by the end of the year.
Stepping up efforts to cut costs, Barclays said up to 9 percent of employees could go, including 7,000 in Britain, where half of the affected staff had already been notified. The cuts are not concentrated in any single business area.
Britain’s third-biggest bank said it paid 2.4 billion pounds ($3.9 billion) in incentive awards last year after raising bonuses at the investment bank by 13 percent despite a slump in profits from the business. The average bonus across the investment bank’s 26,200 staff was 60,100 pounds.
Former SAC Capital Advisors LP fund manager Mathew Martoma was found guilty in the most lucrative insider-trading scheme ever as federal prosecutors racked up a seventh conviction in their six-year probe of the hedge fund and its billionaire founder, Steven A. Cohen.
Jurors in Manhattan federal court yesterday found Martoma, 39, used secret tips on clinical trials of an Alzheimer’s disease drug to trade Wyeth and Elan Corp. shares. In doing so, he reaped a $275 million benefit for the fund. Martoma chose to risk a trial after rejecting U.S. offers of a deal for cooperation. He faces as long as 20 years in prison on the most serious counts.
Martoma showed no reaction when the verdict was announced. As the jury forewoman read the verdict tears welled in the eyes of Martoma’s wife, Rosemary, who sat in the front row of the spectator benches behind her husband. The couple, flanked by defense lawyers, walked out of the courtroom arm-in-arm, with Rosemary Martoma crying visibly.
Martoma’s conviction “is a major win for the government,” said Anthony Sabino, a law professor at St. John’s University in New York, in an interview. “It may embolden them to go after Cohen.”
The jury reached the guilty verdict after less than three days of deliberations. The conviction follows a similar verdict against SAC Capital fund manager Michael Steinberg, who was convicted in December of a separate insider-trading scheme involving technology stocks from 2008 to 2009. He hasn’t been sentenced and may yet seek to strike a deal with the U.S.
Martoma’s conviction raises the possibility that he also may seek to cooperate against Cohen in exchange for leniency, said Sabino. The disclosure, at the start of the trial, of Martoma’s expulsion from Harvard Law School for creating a phony transcript may lead prosecutors to reject such a deal, given the possible damage to his credibility as a witness.
U.S. District Judge Paul Gardephe didn’t set a sentencing date and allowed Martoma to remain free on $5 million bond.
“We are very disappointed,” Martoma’s lawyer, Richard Strassberg, said through his spokesman Lou Colasuonno, who added “we are planning our appeal.”
Martoma was convicted of two counts of securities fraud, a charge that carries a maximum 20 years in prison. He was also convicted of conspiracy, which has a maximum penalty of as long as five years in prison. The longest insider-trading sentence of 12 years was given to attorney Matthew Kluger in 2012 for a $37 million scheme. The second-longest of 11 years was imposed upon Galleon Group LLC co-founder Raj Rajaratnam for a $72 million scheme.
In the Martoma case, prosecutors claimed SAC Capital reversed a bullish stance on Wyeth and Elan in July 2008, selling a $700 million position days after Martoma learned the disappointing trial results for the drug, bapineuzumab, and shared a 20-minute phone call with Cohen.
Cohen, 57, who denies wrongdoing, hasn’t been charged with a crime. He faces an administrative proceeding before the U.S. Securities and Exchange Commission claiming he failed to properly supervise trading at his firm.
In November, SAC Capital agreed to plead guilty to securities fraud in a landmark prosecution of the financial company. The hedge fund agreed to end its investment advisory business and pay $1.8 billion. The plea deal must be approved by a judge before it can take effect.
Cohen plans to rename SAC Capital and add a layer of management to oversee traders as the hedge fund becomes a family office, a person familiar with the firm said.
The Stamford, Connecticut-based company, which will manage about $9 billion for Cohen in addition to employee money, will have three trading units after the restructuring, said the person, who asked not to be identified because the firm is private. The changes are expected to take place by mid-March.
The office of Manhattan U.S. Attorney Preet Bharara has filed insider-trading charges against 83 people and four entities — all of them units of SAC Capital — in its investigation of fund managers, company insiders and expert-networking firms.
In announcing his case against SAC Capital last year, Bharara called it a “veritable magnet for market cheaters,” citing the series of cases his office made against the hedge fund’s portfolio managers and analysts.
Seven former SAC fund managers and analysts — Noah Freeman, Donald Longueuil, Jon Horvath, Wesley Wang, Richard Lee, Steinberg and Martoma — were convicted of insider-trading schemes.
An eighth man, Richard Choo-Beng Lee, an SAC Capital analyst from 1999 to 2004, pleaded guilty in 2009 to insider trading while at Spherix Capital LLC, the hedge fund he co-founded.
Prosecutors said in the indictment of SAC Capital that Lee, while he was at SAC Capital, obtained inside information about technology companies that he passed to the fund’s portfolio managers and others.
Ex- SAC Capital manager found guilty in largest US insider trading case
Published time: February 07, 2014 13:14
Edited time: February 07, 2014 13:46
Mathew Martoma (L) walks with his wife Rosemary (C) and his lawyer after leaving Manhattan federal court, following his arraignment on insider-trading charges on January 3, 2013 in New York City. (Spencer Platt / Getty Images / AFP)
Mathew Martoma, a former SAC Capital hedge fund manager, has been found guilty of insider trading by a federal jury. He bought early information about drugs tests which helped his firm avoid $275 million in losses, and netted Martoma a $9 million bonus.
According to prosecutors, Martoma got secret information from a former Professor of Neurology at University of Michigan Sidney Gilman, who was participating in testing of a new drug for Alzheimer’s disease.
Martoma obtained the trial results for the drug in July 2008, and SAC Capital then started selling off a $700 million position in drug firms Elan and Wyeth before the negative results were made public, says Reuters.
“Martoma bought the answer sheet before the exam – more than once – netting a quarter-billion dollars in profits and losses avoided for SAC, as well as a $9m bonus for him,” Preet Bharara, the US Attorney said. “It made him a convicted felon, and likely will result in the forfeiture of his illegal windfall and the loss of his liberty.”
Steven A. Cohen’s SAC Capital Advisors, a $14 billion hedge fund that has long been in the cross-hairs of the FBI, profited to the tune of $275 million by selling shares in the pharmaceutical companies Wyeth and Elan Corp. now owned by Pfizer Inc, which developed the drug.
At trial prosecutors presented testimony that Dr Sidney Gilman and Dr Joel Ross both provided confidential clinical drug test results to Martoma in exchange for thousands of dollars.
SAC’s Martoma Faces Up to 20 Years at June 10 Sentencing
Former SAC Capital Advisors LP fund manager Mathew Martoma, who was found guilty Feb. 6 in the most lucrative insider-trading scheme ever, is scheduled to be sentenced June 10 and may face as many as 20 years in prison.
Martoma, 39, was convicted of two counts of securities fraud, which carries a maximum 20 year term, and one count of conspiracy, which has a maximum five year term. U.S. District Judge Paul Gardephe may make each term concurrent, and has latitude to impose a significantly shorter sentence.
The longest insider-trading term of 12 years was given to attorney Matthew Kluger in 2012 for a $37 million scheme. The second-longest of 11 years was imposed upon Galleon Group LLC co-founder Raj Rajaratnam for a $72 million scheme.
Martoma was found guilty of a $275 million scheme. His was the seventh conviction tied to SAC Capital-related insider trading in the six-year probe of the hedge fund and its billionaire founder, Steven A. Cohen.
Jurors in Manhattan federal court found Martoma used secret tips on clinical trials of an Alzheimer’s disease drug to trade Wyeth and Elan Corp. shares. In doing so, he reaped a $275 million benefit for the fund.
Prosecutors claimed SAC Capital reversed its bullish stance on Wyeth and Elan in July 2008, selling a $700 million position days after Martoma learned the disappointing trial results for the drug, bapineuzumab, and shared a 20-minute phone call with Cohen. Martoma, who earned a $9.3 million bonus connected to the trades, chose to risk a trial after rejecting U.S. offers of a deal for cooperation.
Danske Suspends Six Bankers as Prosecutor Probes Bond Trades
By Peter LevringFeb 7, 2014 11:01 AM CT
Danske Bank A/S (DANSKE) suspended six employees after Danish prosecutors started a probe into price manipulation on mortgage bond trades conducted in 2009.
The Danish Public Prosecutor for Serious Economic and International Crime has today “brought accusations against Danske Bank of price manipulation under particularly aggravated circumstances,” the Copenhagen-based bank said.
Danske said an internal investigation found that its rules had been violated in transactions between its home-loan arm, Realkredit Danmark A/S, and Danske Bank in the mortgage bond market. The bank said it notified the Financial Supervisory Authority, prompting the police investigation against Realkredit Danmark, Danske Bank and six employees.
“Usually we say that price manipulation will, as a minimum, lead to jail time if they’re convicted,” Hans Fogtdal, a public prosecutor with the crime squad, said by phone. “None of the involved seems to have had a personal motive to commit the crime. It was about securing Danske Bank an additional profit.” The maximum time the employees face behind bars is four years, he said.
Denmark’s $550 billion mortgage bond market is the world’s largest per capita and more than 1 1/2 times the size of the economy. Consumers and businesses in the Nordic nation finance their home loans using bonds. Realkredit Danmark is the country’s biggest provider of bond-backed home loans after Nykredit Realkredit A/S.
Ten Banks in FX Trading Probe Have Handed Evidence to FCA
Ten banks turned over evidence to the U.K. Financial Conduct Authority as part of an investigation into the manipulation of foreign-exchange benchmarks, its chief executive officer told lawmakers.
The allegations are “as bad as Libor,” FCA CEO Martin Wheatley said in London today, referring to the global probe into rigging of the London interbank offered rate. Those investigations have resulted in global fines of about $6 billion and led to reviews of other benchmarks, including currency rates.
The regulator is investigating “a number of benchmarks that operate in London,” Wheatley said. The foreign-exchange probe is unlikely to be concluded this year, he said, without identifying any banks under investigation.
The regulator said in October it was opening a formal probe into currency-rate trading, joining regulators in the U.S. and Switzerland in reviewing the $5.3 trillion-a-day market. The world’s seven biggest foreign-exchange dealers have now all taken action against their employees, with at least 17 traders suspended, put on leave or fired.
Royal Bank of Scotland Group Plc has handed over records of instant messages to the FCA after concluding a former currency trader’s communications with counterparts at other firms may have been inappropriate, according to two people with knowledge of the matter.
Feb 5 (Reuters) – New York banking regulator Benjamin Lawsky is seeking documents from some of the biggest banks in foreign exchange trading, including Deutsche Bank, Goldman Sachs and Barclays, a source familiar with the matter said Wednesday, as a global probe into possible market manipulation widens.
At least seven other law enforcement offices and regulators internationally are investigating whether banks rigged the $5.3 trillion-a-day currency markets. Martin Wheatley, chief executive officer of Britain’s Financial Conduct Authority, said on Tuesday that his watchdog group’s probe could extend into 2015, and that the allegations it is looking into are “every bit as bad” as the Libor manipulation scandal.
Feb 5 (Reuters) – The global head of foreign exchange at Citigroup, the world’s second largest currency trader, is leaving the bank, according to an internal bank memo seen by Reuters on Wednesday.
London-based Anil Prasad’s departure, however, is not related to the global investigation into allegations of currency market manipulation, a source familiar with the matter said.
“Anil’s decision is his own and entirely unrelated to the on-going FX investigations,” the source said.
Citi sees 14.9 percent of the average $5.3 trillion that flows through the world currency markets every day, according to the last annual poll by Euromoney, just behind market leader Deutsche Bank AG which sees 15.2 percent.
Prasad joined Citi in India in 1986 and relocated to New York two years later. In 1996, he moved to London but left the bank the following year to join Natwest Capital Markets.
He returned to Citi in 2000, and was appointed Global Head of Foreign Exchange & Local Markets in February 2007. His successor will be announced in the coming weeks.
Senator Carl Levin’s Permanent Subcommittee on Investigations Is Probing Global Banks’ Involvement in the U.S. Commodities Markets
In a span of four days last week, two current executives and one recently retired top ranking executive of major financial firms were found dead. Both media and police have been quick to label the deaths as likely suicides. Missing from the reports is the salient fact that all three of the financial firms the executives worked for are under investigation for potentially serious financial fraud.
The deaths began on Sunday, January 26. London police reported that William Broeksmit, a top executive at Deutsche Bank who had retired in 2013, had been found hanged in his home in the South Kensington section of London. The day after Broeksmit was pronounced dead, Eric Ben-Artzi, a former risk analyst turned whistleblower at Deutsche Bank, was scheduled to speak at Auburn University in Alabama on his allegations that Deutsche had hid $12 billion in losses during the financial crisis with the knowledge of senior executives. Two other whistleblowers have brought similar charges against Deutsche Bank.
Deutsche Bank is also under investigation by global regulators for potentially rigging the foreign exchange markets – an action similar to the charges it settled in 2013 over its traders’ involvement in the rigging of the interest rate benchmark, Libor.
Just two days after Broeksmit’s death, on Tuesday, January 28, a 39-year old American, Gabriel Magee, a Vice President at JPMorgan in London, plunged to his death from the roof of the 33-story European headquarters of JPMorgan in Canary Wharf. According to Magee’s LinkedIn profile, he was involved in “Technical architecture oversight for planning, development, and operation of systems for fixed income securities and interest rate derivatives.”
Magee’s parents, Bill and Nell Magee, are not buying the official story according to press reports and are planning to travel from the United States to London to get at the truth. One of their key issues, which should also trouble the police, is how an employee obtains access to the rooftop of one of the mostly highly secure buildings in London.
Nell Magee was quoted in the London Evening Standard saying her son was “a happy person who was happy with his life.” His friends are equally mystified, stating he was in a happy, long-term relationship with a girlfriend.
The Fed policies of Ben Bernanke and Janet Yellen, who begins her term Feb. 1, are making former Harvard economist Terry Burnham withdraw his money from Bank of America. Photo by Davis Turner/Getty Images.
Last week I had over $1,000,000 in a checking account at Bank of America. Next week, I will have $10,000.
Why am I getting in line to take my money out of Bank of America? Because of Ben Bernanke and Janet Yellen, who officially begins her term as chairwoman on Feb. 1.
Before I explain, let me disclose that I have been a stopped clock of criticism of the Federal Reserve for half a decade. That’s because I believe that when the Fed intervenes in markets, it has two effects — both negative. First, it decreases overall wealth by distorting markets and causing bad investment decisions. Second, the members of the Fed become reverse Robin Hoods as they take from the poor (and unsophisticated) investors and give to the rich (and politically connected). These effects have been noticed; a Gallup poll taken in the last few days reports that only the richest Americans support the Fed. (See the table.)
Why do I risk starting a run on Bank of America by withdrawing my money and presuming that many fellow depositors will read this and rush to withdraw too? Because they pay me zero interest. Thus, even an infinitesimal chance Bank of America will not repay me in full, whenever I ask, switches the cost-benefit conclusion from stay to flee.
Let me explain: Currently, I receive zero dollars in interest on my $1,000,000. The reason I had the money in Bank of America was to keep it safe. However, the potential cost to keeping my money in Bank of America is that the bank may be unwilling or unable to return my money.
They will not be able to return my money if:
Customers wait in line at the IndyMac Bank branch headquarters in Pasadena, Calif., in July 2008. Joshua Lott/Bloomberg News
Many other depositors like you get in line before me. Banks today promise everyone that they can have their money back instantaneously, but the bank does not actually have enough money to pay everyone at once because they have lent most of it out to other people — 90 percent or more. Thus, banks are always at risk for runs where the depositors at the front of the line get their money back, but the depositors at the back of the line do not. Consider this image from a fully insured U.S. bank, IndyMac in California, just five years ago.
Some of the investments of Bank of America go bust. Because Bank of America has loaned out the vast majority of depositors’ money, if even a small percentage of its loans go bust, the firm is at risk for bankruptcy. Leverage, combined with some bad investments, caused the failure of Lehman Brothers in 2008 and would have caused the failure of Bank of America, AIG, Goldman Sachs, Morgan Stanley, Merrill Lynch, Bear Stearns, and many more institutions in 2008 had the government not bailed them out.
In recent days, the chances for trouble at Bank of America have become more salient because of woes in the emerging markets, particularly Argentina, Turkey, Russia and China. The emerging market fears caused the Dow Jones Industrial Average to lose more than 500 points over the last week.
Returning to my money now entrusted to Bank of America, market turmoil reminded me that this particular trustee is simply not safe. Or not safe enough, given the fact that safety is the reason I put the money there at all. The market turmoil could threaten “BofA” with bankruptcy today as it did in 2008, and as banks have experienced again and again over time.
If the chance that Bank of America will not return my money is, say, a mere 1 percent, then the expected cost to me is 1 percent of my million, or $10,000. That far exceeds the interest I receive, which, I hardly need remind depositors out there, is a cool $0. Even a 0.1 percent chance of loss has an expected cost to me of $1,000. Bank of America pays me the zero interest rate because the Federal Reserve has set interest rates to zero. Thus my incentive to leave at the first whiff of instability.
The Hunger Site – Your click helps to feed the hungry
Discount School Supply
Dog Houses . com
Chicken Coop Source . com
Compost Bins . com
FAIR USE NOTICE
Due to the social nature of this site, it may contain copyrighted material the use of which has not always been specifically authorized by the copyright owner. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit, to those who have expressed a prior interest in participating in this community for educational purposes. For more information go to: http://www.copyright.gov/title17/92chap1.html#107. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use’, you must obtain permission from the copyright owner.
Any materials (ie. graphics, articles , commentary) that are original to this blog are copyrighted and signed by it's creator. Said original material may be shared with attribution. Please respect the work that goes into these items and give the creator his/her credit. Just as we share articles , graphics and photos always giving credit to their creators when available. Credit and a link back to the original source is required.
If you have an issue with anything posted here or would prefer we not use it . Please contact me. Any items that are requested to be removed by the copyright owner it will be removed immediately. No threats needed or lawsuit required. If there is a problem and you do not wish your work to be showcased then we will happily find an alternative from the many sources readily available from creators who would find it amenable to having their work presented to the subscribers of this feed.
Thank you for your time and attention, blessings to all :)