There Is "No Evidence" We Encouraged Forex Manipulation, Bank of England Says

Tyler Durden's picture


In what has to be the most disappointing denial of central bank manipulation of a market in recent history, and probably never, the Bank of England today announced that it "has seen no evidence to back media allegations that it condoned or was aware of manipulation of reference rates in the foreign exchange market." As a reminder, last week we reported, that according to a Bloomberg, "Bank of England officials told currency traders it wasn’t improper to share impending customer orders with counterparts at other firms" or, in other words, the highest monetary authority in England, and the oldest modern central bank, explicitly condoned and encouraged manipulation. Fast forward to today when Andrew Bailey, the Bank's deputy governor and chief executive of the Bank's Prudential Regulation Authority, told parliament's Treasury Select Committee on Tuesday it had no evidence to suggest that bank officials in any sense condoned the manipulation of the rate-setting process. In other words, it very well may have... but there just is no evidence - obviously in keeping with the bank's very strict "smoking manipulation gun document retention policy."

Then again, such evidence already was presented to UK regulators: "Bloomberg News said on February 7 that the Bank officials told currency traders at the April 2012 meeting that it wasn't improper to share impending customer orders with counterparts at other firms.  A senior trader gave his notes from the meeting to the Financial Conduct Authority, Bloomberg said."

Hence, Mr Bailey had to modestly revise his statement:

"I should say that we have no evidence yet, and we have not seen the evidence that was in the Bloomberg report," he added.

He added that the Bank of England review was in close cooperation with the Financial Conduct Authority (FCA), which is also investigating broader allegations of manipulation in the foreign exchange markets.

Which obviously means that should the BOE never be "confronted" with the evidence, and it mysteriously "disappears", it simply means that one of Mark Carney's henchmen pulled a few levers at the FCA, and made it disappear: of course, on national security grounds, because should it surface that a central bank is merely a criminal organization, then faith and confidence in the Ponzi system might falter. It would also mean confirm what most people who care about these things know: when it comes to UK governance, the buck stops with Threadneedle. And not only there, but everywhere else too.

The rest of the report is trivial fluff and generic spin:

"The Bank does not condone any form of market manipulation in any context whatsoever," Bailey told the lawmakers on Tuesday.

"On the evidence we have currently, we have no evidence to substantiate the claim that bank officials in any sense condoned or were informed of price manipulation or the sharing of confidential client information," Bailey added.

"We've released the minutes of that meeting, but obviously there are now allegations that there are different versions of what happened at that meeting," Bailey said.


Bailey said the claims, which the central bank first heard about last October, were being taken "very seriously" and a full review was now underway, led by the Bank's internal legal counsel with support from an external counsel.

Perhaps just to confirm how serious the "review" is, Bailey should also release a few photos of the internal and external counsels operating the paper shredders with the passion of 2nd year Arthur Andersen intern.

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Tue, 02/11/2014 - 19:13 | 4425666 Racer
Racer's picture

Classic along with:

'sub-prime is well contained'

'I did not have sex with that woman'

'Stocks have reached a permanently high plateau'

'an end to boom and bust'

'we have to keep spending money to save from going bankrupt'

Tue, 02/11/2014 - 19:18 | 4425697 john39
john39's picture

these are the droids you are looking for...

Tue, 02/11/2014 - 19:43 | 4425793 NotApplicable
NotApplicable's picture

There Is "No Evidence" We Encouraged Forex Manipulation, Bank of England Says. Know what I mean? Know what I mean? Nudge nudge. Nudge nudge. Know what I mean? Say no more...know what I mean?

Tue, 02/11/2014 - 20:28 | 4425974 El Oregonian
El Oregonian's picture

Yea sure, and the southern border is secured against illegal border-crossers.

Tue, 02/11/2014 - 22:50 | 4426516 Boris Alatovkrap
Boris Alatovkrap's picture

"There is not evidence of manipulation"


"We are careful not to leave evidence" for defense when cannot outright deny doing of wrong.

Wed, 02/12/2014 - 13:59 | 4428615 Theosebes Goodfellow
Theosebes Goodfellow's picture

"You can't prove shit!", said Union Jack's jeering maw.

Tue, 02/11/2014 - 19:23 | 4425719 NoDebt
NoDebt's picture

I guess that's what passes for a denial these days.  Weak.  

Where's Columbo when you need him?  "Oh, by the way, before I forget, I have one more question..." and then gets them to admit their own guilt.


Tue, 02/11/2014 - 22:52 | 4426524 Boris Alatovkrap
Boris Alatovkrap's picture

How could possibly be guilt when bank is so careful for eliminate trace of evidence!? Boris is long paper shredder and chemical bleach (maybe HFl acid is better too?).

Tue, 02/11/2014 - 20:37 | 4426009 logicalman
logicalman's picture

It was an angel, Joseph, Honest.

Tue, 02/11/2014 - 21:12 | 4426149 malek
malek's picture

you forgot the most classic:

"The parrot's not dead, it's resting!"

Tue, 02/11/2014 - 19:12 | 4425667 kchrisc
kchrisc's picture

"No evidence."
Because they killed or silenced it.

Tue, 02/11/2014 - 21:04 | 4426121 Leaf of Tree
Leaf of Tree's picture

Some jumped on their own free will from the 33th floor.

Tue, 02/11/2014 - 19:13 | 4425671 kaiserhoff
kaiserhoff's picture

Meaning they are sure they have torched all the evidence,

   or wut?

Tue, 02/11/2014 - 19:28 | 4425730 Number 156
Number 156's picture

"Give me control of a nation's money and I care not who makes it's laws"

In essence, they can perform ritual child sacrifice on the front steps of their building, and nobody in government will either want to or be able to do anything about it.

Tue, 02/11/2014 - 19:13 | 4425673 SMG
SMG's picture

According to Jim Willie, the recent rash of banker suicides is related to this forex manipulation:


Tue, 02/11/2014 - 19:52 | 4425823 BanksterSlayer
BanksterSlayer's picture

Hope those fire extinguishers down in the BoE basement are been inspected recently.

Tue, 02/11/2014 - 19:13 | 4425674 Canadian Dirtlump
Canadian Dirtlump's picture

Just like the lies we are fed each day by politicians which are provably false - some day, there will be a critical mass of people who get it. Then we'll knock em off their fucking horses, eat their horses, then hang em. Enough people have to be able to look at this and say, fuck that - you're full of it. They can't do it with something like the war on terror though - so to most, the murky world of FX trading - you may as well be speaking conversational asperanto to them.

Sadly, when that happens - lord only knows, and until then, the beatings will continue until morale improves.



Tue, 02/11/2014 - 22:54 | 4426536 Boris Alatovkrap
Boris Alatovkrap's picture

"eat their horses, then hang em."

Boris is confuse at why you are hang dead horse? Is this metaphor?

Wed, 02/12/2014 - 08:35 | 4427369 Lumberjack
Lumberjack's picture

( As a reminder, last week we reported, that according to a Bloomberg, "Bank of England officials told currency traders it wasn’t improper to share impending customer orders with counterparts at other firms")


...And citizen who spoke at cave meeting is fall in tar pit next day... 

Wed, 02/12/2014 - 14:06 | 4428659 Theosebes Goodfellow
Theosebes Goodfellow's picture

Yes, Boris, it's a Canadian thing. Similar to Blazing Saddles' "Rape their cattle and rustle their women" or the ever popular Gunny Ermey's "I'll tear off your head and shit down your neck", (which I always considered rather figuratively picturesque).

Tue, 02/11/2014 - 19:16 | 4425678 notadouche
notadouche's picture

Fuure Headline:

An unnamed "Senior Trader" whom shared his notes of the meeting with the FCA (not to be confused with the Fellowship of Christina Athletes) was found dead of an apparent suicide.  He apparently jumped backwards THROUGH the window on the 10th story of a building.  

Tue, 02/11/2014 - 19:24 | 4425721 gwar5
gwar5's picture

This is the BOE running away faster with their skirt up than a guys in the room can run with their pants down.





Tue, 02/11/2014 - 19:46 | 4425733 chump666
chump666's picture

The UK is a crony masterpiece, sells a huge chunk of it's gold in 2010, prints like no tomorrow, bails out it's WHOLE banking system, re-inflates a housing and credit bubble that makes pre-2008 look like nothing, all the while the BoE allows crony crooks at a  slew of banks manipulate LIBOR and now FX. 

The list:


For the OWS peoples, all you need is one chart: EU unemployment spiking and PIIGS/EU bond yields collapsing.  Now go get the guillotines and Molotovs your thing.



Tue, 02/11/2014 - 19:27 | 4425734 Angus McHugepenis
Angus McHugepenis's picture

I stopped reading at, "There is no evidence", and immediately knew it was about banksters..

Tue, 02/11/2014 - 19:31 | 4425743 Cacete de Ouro
Cacete de Ouro's picture

How dare you! We were all playing cricket at the Bank of England sports fields in Roehampton when it it didn't happen

Tue, 02/11/2014 - 19:30 | 4425745 Frank N. Beans
Frank N. Beans's picture

somewhere there lies another suicided banker with nails in the back of his head.


Tue, 02/11/2014 - 19:36 | 4425757 A Nonymous Bosch
A Nonymous Bosch's picture

A full review.  With




Tue, 02/11/2014 - 19:41 | 4425784 Meat Hammer
Meat Hammer's picture

"No evidence"?

Come on, rookies!  The correct term is "inconclusive".  

Tue, 02/11/2014 - 19:49 | 4425788 falak pema
falak pema's picture

You have to understand what a "blanc Seing" means.

It means "carte blanche".  

Alexander Dumas made it iconically famous in the Three Musketeers : "It is under my orders and for the good of the State that the bearer of the present did what he did"...signed Cardinal Richelieu.

That was the dramatic birth of Machiavellian Reason of State in modern literature.

It has been the Modus Operandi all through history. LBJ made it famous in the Gulf of Tonkin false flag casus belli.

The banks have received a similar blanc-seing since TARP and decree that the TBTF were virtually untouchable, as their downfall was SYSTEMIC.

All moral hazard then disappeared from their horizon. Not surprising that bad went to worse four times over since 2008.

So the Blanc-Seing that Potus GWB and successors gave the banks the Central banks now show the world unashamedly as it has the stamp of State on it that nobody dares contradict; except the likes of EW.

"We are doing God's work and we have carte blanche to do EVERYTHING THAT IT TAKES"...

As long as Potus and Congress do not tear up that old blanc-seing; --Volcker/Vickers rules are a timid attempt-- the banks feel they are covered by that carte blanche.

Tue, 02/11/2014 - 22:34 | 4426456 disabledvet
disabledvet's picture

Banks bailouts...bad for banking, bad for bailouts.

Tue, 02/11/2014 - 19:46 | 4425794 Cacete de Ouro
Cacete de Ouro's picture

Just like when Terry Smeeton of the Bank of England (the bird watcher) was manipulating the gold fix in the 1980s, under the watchful eye of Oliver Page (Oliver subsequently went to work in the FSA).

Now tell me this and tell me no more. When the guy overseeing the P&L on the Bank of England's gold manipulation activities (Page) then goes to work at one of the highest positions at the FSA (now FCA), then who is going to prosecute Page? Smeeton the bird watcher is gone to the bird paradise in the sky by the way.

Who will prosecute the Bank now and in what form?

The Treasury (HMT)? Fuck that! The pretend idiot chancellor Gideon is a lackey of nathan roth; hookers up to the gills he has had; sex addict they whisper. He won't prosecute a fly

Tue, 02/11/2014 - 19:46 | 4425804 Atomizer
Atomizer's picture

How about we pull all money from the Bank of England first. Then you can run amok with your committee reviews and figure out the manipulation solely. As each day passes, you’ll bleed like a two bit whore without the peasants money to access.



  1. Withdraw all money to make you bleed.
  2. Give us the name of individual.
  3. BTW, if you kill them off before we meet with him/her, step one begins.
Tue, 02/11/2014 - 19:52 | 4425833 Cacete de Ouro
Cacete de Ouro's picture

Unfortunately there are no public drawing accounts at the Bank (hasn't been for a long time). Ownership stock of the Bank is another nono, it hasn't existed for such a long time now, and no dividends neither.

They really closed up the shop back then...a real pity

Tue, 02/11/2014 - 20:12 | 4425918 Atomizer
Atomizer's picture

Haven’t been there since 2005-2007, not sure. Have to check passport to be exact. I do vaguely remember the private bank security box raids. What a shame. Typically, we in US are five years behind the bullshit that spews from London/Brussels.

Tue, 02/11/2014 - 19:50 | 4425810 Meat Hammer
Meat Hammer's picture

They didn't deny culpability, they just said there's no evidence.

Clever fuckers.

I think this thread needs an Inthemix96 rant.

Tue, 02/11/2014 - 20:45 | 4426046 Darksky
Darksky's picture

I agree.

Tue, 02/11/2014 - 19:51 | 4425819 swass
swass's picture

There's "not even a smidgen of corruption"

Tue, 02/11/2014 - 19:54 | 4425832 BanksterSlayer
BanksterSlayer's picture

"We have sworn an oath before God Almighty that we are telling the truth...." and sealed said oath with numerous child sacrifices and boar hunt.

Tue, 02/11/2014 - 20:13 | 4425933 Cacete de Ouro
Cacete de Ouro's picture

Bundesbank supposedly repatriated 930 tonnes of gold from Bank of England in 2000/2001 and put about 76,000 bars of 400oz each into small boxes (50 bars per box), then put the whole Shabang into 4 big strong boxes. I kid you not.

In reality, the 930 tonnes or thereabouts went to Riyadh in Saudi Arabia to keep up the gold payments to Saudi (gold for oil) that were agreed with the BIS since the early 1980s

Tue, 02/11/2014 - 20:27 | 4425969 Son of Captain Nemo
Son of Captain Nemo's picture

Just like there is no evidence the IRS did this...

Let me know when Obummer gives the signature farewell arm wave goodbye behind the White house on the helicopter pad...

Tue, 02/11/2014 - 20:31 | 4425988 Joebloinvestor
Joebloinvestor's picture

The UK stopped manufacturing because it couldn't compete.

The UK will stop being the "financial hub" the same way as there are better crooks in the US.

Although Argentia has a quaint solution, just burn everything.

Tue, 02/11/2014 - 20:31 | 4425997 logicalman
logicalman's picture

I'm sure they have EVERYTHING to hide!

Tue, 02/11/2014 - 20:33 | 4426003 Tic tock
Tic tock's picture

On the contrary, the evidence is clear enough; the BOE condoned insider trading.

Tue, 02/11/2014 - 20:42 | 4426030 grunk
grunk's picture

You can't show that I knew she was a minor.

Tue, 02/11/2014 - 22:36 | 4426471 disabledvet
disabledvet's picture

But I can show you knew she was a (drum) major...

Tue, 02/11/2014 - 20:46 | 4426043 sampo
sampo's picture

There Is "No Evidence" We Encouraged Forex Manipulation, Bank of England Says


So, Brown's bottom never happened, eh?

Tue, 02/11/2014 - 21:09 | 4426138 Papasmurf
Papasmurf's picture

Did not encourage is not the same as did not participate in.

Tue, 02/11/2014 - 23:01 | 4426562 williambanzai7
williambanzai7's picture

If you don't look, you won't see.

This is the principle of wilful ignoramus.

Wed, 02/12/2014 - 04:56 | 4427218 smacker
smacker's picture

The system of government in the UK is utterly corrupt, so criminal and has had so many centuries to perfect its self-protection mechanisms, that its apparatchiks will close ranks. This allegation will fade away, like all other criminal actions carried out by government and its army of state agencies and quangos. MSM will do its duty and wipe it off the headlines. Everybody will move on. Rinse and repeat.


Wed, 02/12/2014 - 05:47 | 4427261 Pseudonymous
Pseudonymous's picture

Perhaps they know enough not to try to actually deny it, because if they did it would have sounded like this:

"We left the rates unmanipulated and they were already manipulated before we touched them and we didn't even touch them in any way to begin with!"

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