Scandal: Bank Of England Encouraged Currency Manipulation By Banks

Tyler Durden's picture

Raise your hand if you are surprised that, as has emerged, virtually every major bank was manipulating currencies (and everything else) whether as part of the "Bandits' Club", the "Cartel" or some other - until recently- secret message room.

That's what we thought.

Now raise your hand if you thought the manipulation could be so pervasive, so glaring and so in your face, that even the oldest central bank - the Bank of England - and who knows how many other monetary authorities, were openly encouraging traders from these private banks to do more of the illegal activity they had been engaging in - namely manipulating currencies - with their explicit blessing knowing very well such behavior is undisputedly illegal.

We hope at least one or two hands went up, because which it is one thing to be cynical about what is going on behind the scenes, it is something else to see the edifice of global corruption and criminality, whose only purpose was to preserve the status quo, unwinding before your very eyes substantiated by actual facts.

Such as this report by Bloomberg which confirms that yet another conspiracy theory is fact, as at least one central bank has been exposed to not only have known about a criminal activity that is now costing the jobs of hundreds of traders (and should lead to jail time), but to have urged it on.

From Bloomberg:

Bank of England officials told currency traders it wasn’t improper to share impending customer orders with counterparts at other firms, a practice at the heart of a widening probe into alleged market manipulation, according to a person who has seen notes turned over to regulators.

A senior trader gave his notes from a private April 2012 meeting of currency dealers and two central bank staff members to the Financial Conduct Authority about six weeks ago because of mounting media coverage of the investigation, said the person, who asked not to be named while probes are under way.


Traders representing some of the world’s biggest banks told officials at the meeting that they shared information about aggregate orders before currency benchmarks were set, three people with knowledge of the discussion said. The officials said there wasn’t a policy on such communications and that banks should make their own rules, according to the people. The notes could drag the U.K. central bank into another market-rigging scandal two years after it was criticized by lawmakers for failing to act on warnings that Libor was vulnerable to abuse.


If traders can show “they made Bank of England officials aware of practices in the FX market some time ago, then the bank will be at risk of being characterized as having endorsed, by its silence and inaction, the very practices which are now under investigation,” said Simon Hart, a lawyer at RPC LLP in London.

Wait for it, wait for it... Here it comes: "If the BOE did not encourage currency manipulation by bankers, then the world would have crashed" - did we get the excuse that the Bank of England (and soon after, the Fed, the SNB, the BOJ and all other banks as there is never just one cockroach) will use to justify their criminal behavior? Why, of course.

But for now the bank had this to say:

A spokeswoman for the Bank of England declined to comment about the 2012 meeting beyond what was contained in a summary provided to Bloomberg News last month. Those notes included a reference to “a brief discussion on extra levels of compliance that many bank trading desks were subject to when managing client risks around the main set-piece benchmark fixings.” No further details of the discussion were provided.

“Allegations that banks may have been rigging the forex market are extremely serious, particularly for firms but also for regulators who had been telling Parliament that banking standards were improving,” Andrew Tyrie, the British lawmaker who led an inquiry into practices in the banking industry following the Libor scandal, said in a statement today.



The Bank of England officials said they viewed the practices as positive to reduce market volatility and wouldn’t take the matter to the standing committee, according to the people with knowledge of the meeting. That body included a representative from the Financial Services Authority, the FCA’s predecessor, according to central bank records.


By pooling information on client orders, current and former traders interviewed by Bloomberg News have said they could gain an impression of probable moves in currency markets, knowledge they said they sometimes used to place their own bets before the benchmark WM/Reuters rates are set at the 4 p.m. London close.

The details of the BOE's loathsome conduct:

Dealers at the April 2012 meeting with Martin Mallett, the Bank of England’s chief currency dealer, and James O’Connor, who works in its foreign-exchange division, were told not to record the discussion or take notes, one of the people said. One trader wrote down what was said soon after leaving because of concerns spawned by investigations of attempted manipulation of the London interbank offered rate, or Libor, the person said.


Two traders at the meeting -- Citigroup Inc. (C)’s Rohan Ramchandani and UBS AG (UBSN)’s Niall O’Riordan -- are among at least 20 employees of global banks who have been fired, suspended or put on leave since Bloomberg News first reported in June that dealers said they shared information about client orders to manipulate benchmark rates used in the $5 trillion-a-day currency market, the world’s biggest.

In other news, head FX traders for Goldman, JPMorgan, RBC and Deutsche have resigned in recent weeks, in what are clearly unrelated actions. Maybe they will want to also avoid flying in the coming weeks and months, as the last thing the market needs now are more revelations not only how manipulated everything is, but that the orders for such manipulation originate at the very top of the banker oligarchy.

Alternatively, maybe instead of perpetuating the "fair and efficient markets" lie, the world's central banks will be kind enough to just let everyone in on where they determine to close what once were "markets" at any given day so that everyone can benefit from a broken and corrupt system, instead of just a few not so good bankers. After all, with everyone profiting from the no risk, guaranteed return market all the time, at least inflation will finally go off the charts.

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madbraz's picture

So the FBI will raid the NY FED offices some day?  

Boris Alatovkrap's picture

FBI is law enforcement arm of banking cabal. FBI mission is protect interest of FED, not prosecute FED.

Occident Mortal's picture

Round and round, round and round, round and round we go. Round and round, round and round, round and round we go. Round and round, round and round, round and round we go. Round and round, round and round, round and round we go. Round and round, round and round, round and round we go. Round and round, round and round, round and round we go. Round and round, round and round, round and round we go. Round and round, round and round, round and round we go. Round and round, round and round, round and round we go. Round and round, round and round, round and round we go. Round and round, round and round, round and round we go. Round and round, round and round, round and round we go. Round and round, round and round, round and round we go. Round and round, round and round, round and round we go. Round and round, round and round, round and round we go. Round and round, round and round, round and round we go. Round and round, round and round, round and round we go. Round and round, round and round, round and round we go. Round and round, round and round, round and round we go. Round and round, round and round, round and round we go. Round and round, round and round, round and round we go. Round and round, round and round, round and round we go. Round and round, round and round, round and round we go. Round and round, round and round, round and round we go. Round and round, round and round, round and round we go. Round and round, round and round, round and round we go.

Annoyingserf's picture

Come now.  Aren't you being a touch too cynical?

zaphod's picture

The entire purpose of a central bank is to manipulate currency values. That was the primary reason they were created in the first place. 

So how is a central bank doing what it was created to do a scandal. Just that the extent of the manipulation was exposed? 

WarriorClass's picture

If you see a bankster, kill a bankster.

- Janet Napolitano (or something like that)

666's picture

The BOE is just doing God's work, like GS and all the others.

James_Cole's picture

I'm starting to get the sense that the statistically impossible jp morgue and bofa trading records may have involved some illegal activity...

akak's picture

Wow James, YOU implicitly speaking out against the establishment and the status-quo?  That is quite out of character for you.

dryam's picture

I clearly having nothing bad to say about the British populace as they are great.

Financial scandal from England?  Duh!  That shitty little (ecomonically speaking) country has essentially nothing tangible, but it's a quite wealthy.  They've been ripping off the rest of the world for a very long time.  The epicenter of financial corruption is not in the U.S., it's in England.

V in PA's picture

 "Let me issueand control a Nation's money and I care not who makes its laws". - Bauer Mayer Rothschild



"The few who can understand the system will be either so  interested in its profits, or so dependent on its favours,  that there will be no opposition from that class, while, on  the other hand, that great body of people, mentally  incapable of comprehending the tremendous advantage that  Capital derives from the system, will bear its burden  without complaint and, perhaps, without even suspecting  that the system is inimical to their interests."

Vooter's picture

"So how is a central bank doing what it was created to do a scandal."

Created by whom, and with what permission?

Pegasus Muse's picture

"It is also important for the State [Central Bank] to inculcate in its subjects an aversion to any "conspiracy theory of history"; for a search for "conspiracies" means a search for motives and an attribution of responsibility for historical misdeeds… Furthermore, an attack on "conspiracy theories" means that the subjects will become more gullible in believing the "general welfare" reasons that are always put forth by the State [Central Bank] for engaging in any of its despotic actions. A "conspiracy theory" can unsettle the system by causing the public to doubt the State's [Central Bank’s] ideological propaganda." … Murray Rothbard, "The Anatomy of the State"


"Who makes up a criminal conspiracy? If you go and look, [you'll find] they are made up of bankers, politicians, judges and, just perhaps, once in a while, a criminal." … Italian presidential candidate Beppe Grillo

Master_Blaster's picture

It will be news, when we find out they don't manipulate something.....oh wait, PMs....nevermind, back to my tin foil hat.

SafelyGraze's picture

front-running aggregate orders, and advising our friends to do the same, generates alpha.

if we didn't have alpha, we would have to start bail-inning it from our 'investors'

or else task our assistants with confiscating it from sovereigns or the general populace

this way is a lot better for everyone.

don't you agree.

I'm sorry .. I didn't hear you.

markarney's boss 

limit_less's picture

This is what happens when there is no gold standard. simple solution, use a silver based or gold based bank account. schiff offers it. i do not work for schiff

Againstthelie's picture

The forces of evil grew among the gold standard, too!

It doesn't matter if you borrow one ounce of gold and must pay back 33 grams or you borrow 10 Dollars and must pay back 11 Dollars.

Interest and compound interest, interest slavery, is the key!

halfawake's picture

aka "National Security" (how do I say that in Boris-speak?)

El Oregonian's picture

This reminds me of an old childhood song that went something like this:

"If it's crappy and you know it, clap your hands."

Boris Alatovkrap's picture

Is like Russia Army song,

"If is clap and you know it, pull up your pants."

(part of field training and operational film)

TruthInSunshine's picture

I wonder what Tolstoy would have had to say & write about this - the House of Rothschild (aka Bank of England), which literally was the first private bank (look at the roster of its constituent members/masters) to LITERALLY buy off an allegedly "representative"government, and indebt (forever) an allegedly sovereign nation (now a nation of "plebes'" just as in the USSA, EU, Japan, etc.

kralizec's picture

Piss hurt...bend bars...

Paging Dr.Dick!

Frank -THE COIN -'s picture

You have to Rub the Lamp first and then Boris will appear.

SoilMyselfRotten's picture

You guys just don't recognize when banksters are adding liquidity to the system.

LawsofPhysics's picture

Speaking of bankster manipulation, WTF is going on with the treasury yields today?  Normal market function my ass.

TruthInSunshine's picture

Follow the yellow brick road and...


Groundhog Day's picture

The only hope to end all the corruption is money which can not be controlled by these institutions. Gold, Silver or barter.  oops the alarm clock is ringing..must get to work to earn my credits and pay my fair share t0 support the 50 million on food stamps, 20 million .gov employees etc etc

Budd aka Sidewinder's picture

FBI it too busy investigating the IRS to handle the banking industry

Boris Alatovkrap's picture

Bankster cabal law enforcement division is investigation of collection division? You are joke, no? Is like Warren commission is put ex-CIA chief Alan Dulles head of investigate Kennedy Assassination. You are only get zig-zag-magic-bullet.

Pladizow's picture







ArkansasAngie's picture

How about keep calm and stop these arseholes.

There isn't a free market today because of these yahoos.

You want to know why there is an income inequality?  Look no further than the shatheads who are picking the winners and losers.

National security?  Horse manure.

Anusocracy's picture

A free-market cannot exist where there is a government.

Government's very existence distorts prices.

NOTaREALmerican's picture

Re;  A free-market cannot exist where there is a government.

A free-market cannot exist where smart-n-savvy people can manupulate dumbasses with bullshit.

A free-market cannot exist where dumbasses believe the bullshit of sociopaths.

A free-market is the fantasy of semi-autistic humans who can't comprehend that the key to success is duplicity.

LawsofPhysics's picture

How are we the people going to "stop these arseholes"?  Especially when they are making just the act of speaking out against them illegal Angie?  Let me guess, you're going to "vote" them out.


samsara's picture

KCCO For the rest of us

The Dunce's picture

Going to an Ivy League school is wonderful.  You are actually given permission to rape and kill.  Bastards.

Thought Processor's picture



Ok, call me crazy but doesn't everybody know that the Central Banks manipulate currencies on a daily (probably minute by minute actually) basis now.   It's like their bread and butter.  It's what they do.


If you are playing in this game and you don't know the above then, wow.  Just wow.


That and all other Gov. agencies work for the Central Banks.


Imagine that this is all one big casino, and they are the house.


And yet, I suppose there are still some people out there that still don't know this.  

Boris Alatovkrap's picture

Is just big circle jerk.

Canadian Dirtlump's picture

as long as a cracker isn't involved it's all above board so they say.


either way.. just another day in paradise. pay a modern day indulgence to get your sins forgiven, and provided it makes the light of day to the gum chewing, anti depressant addled masses - the few who understand the implications will be preoccupied with Honey boo boo's new hairstyle.

Stoploss's picture

So, looks like we need another British bashing excersise.

You stupid fuckers keep it up...  All of a sudden "Fuck the EU" doesn't sound all that bad, since we have been bailing out these cocksuckers for five years running now..

Jan, fire up that printer and export the exponential hyper inflation right to the shores of where that shit belongs...

youngman's picture

If they are worried about the FX can be sure they are playing with the PM Markets...that is the base of all Curriencies and how they are valued..if the PMs get to high..there is no faith in the Fiat....

TruthInSunshine's picture

The Banks of Israel was even a "whale" of a client in the "stock markets" with the illustrious - now Federal Reserve 2nd in command & Ben Shalom Bernanke's former mentor, Stanley Fisher - as lead equity anal-cyst.


Racer's picture

"Some animals are more equal that others"

HyBrasilian's picture

Is that that 'Rothschilds' controlled BOE you're talking about?. That one? That thing where moneychangers counterfeit little pieces of paper and steal your gold with it?

Tinky's picture

Only slightly off-topic: An outstanding interview with Snowden by a German journalist is linked below. Watch it in its entirety, and it will quickly become crystal clear why no American media outlet would dare allow him to speak freely on their networks. Also, anyone who imagines that he is not a genuine whistleblower would be hard pressed to maintain such fantasies after watching this.

Sean7k's picture

You seem to lack imagination. The zionist elites control the US and Russia, so Snowden's asylum is political theatre. What you need to think about is why? Why are banks being exposed? Why are security arrangements being exposed? Why are State misbehaviors being exposed? 

There is a greater purpose and sacrifice behind all these actions. Just as the zionists allowed the killing of jews in WWII to create a favorable environment for their goals (state of israel), the trashing of markets, capitalism, security, currency and credit markets are all part of a plan to get the slave population to agree to new policies and control measures.

Totalitarianism requires the assent of the people. It is too difficult to police everyone. You must convnce the people that it is one, for their own good and two, their idea. There s a reason the media is controlled. There is a reason all the shows are police, legal and medical dramas- it causes the population to idolize these necessary agencies- agencies that are state controlled.