One day after news hit that a prominent HSBC FX trader was arrested, we find that the bank conducted its own investigation three years ago into a $3.5bn currency trade that US prosecutors now believe was criminally fraudulent and found nothing wrong with the transaction. The HSBC review was led by an external lawyer and found no breach of its code of conduct.
Just days after Hillary Clinton is found to have negligently broken laws but faced no charges, four former Barclays bankers appear to have been scapegoated over their libor-rigging. 45-year-old Jay Merchant was the hardest hit - sentenced to 6 1/2 Years in prison.
The first bank to admit that it engaged in massive manipulation of the LIBOR rate was Barclays back in 2012, and traders are still being scapegoated tried in court to this day. As Bloomberg reports, five traders learned their fate recently, nearly four years since the bank admitted to the charge. Three traders were convicted, while the jury was unable to reach a verdict on the final two.
At Kviabryggja Prison, the tumult in the capital seems worlds away. It’s dead quiet around the single-story barracks, and in the distance rise massifs that form Iceland’s western fjords. The Kaupthing convicts are marking time in different ways. A couple of them are tutoring fellow inmates. The subjects: math and economics.
Two days ago we brought you excerpts from a Huffington Post investigative report on Unaoil, a previously obscure Monaco company that allegedly functions as a kind of Bribery Incorporated for state actors looking to curry favor with the world’s oil exporters. On Friday, acting on a request from the UK's Serious Fraud Office, police in Monaco raided Unaoil's offices along with the homes of the family at the heart of the controversy.