Bank Of England Finds No Evidence Of FX Market Collusion (But Suspends Employee)

Tyler Durden's picture


"This extensive review of documents, e-mails and other records has to date found no evidence that Bank of England staff colluded in any way in manipulating the foreign exchange market or in sharing confidential client information,” the Bank of England said today in a statement. Yet, as Bloomberg reports, a staff member was suspended amid the probe of a widening rigging scandal though "no decision has been taken on disciplinary action." As far back as 2006, they show concerns over the FX "fixings" that are at the core of this collusion but are careful not to condone any form of market manipulation. Well that's that then - until the next whistleblower exposes them.


As we noted in the past (via WSJ),

As previously reported by The Wall Street Journal, several of the fired and suspended traders, including Citigroup's former chief European trader Rohan Ramchandani, have at times served on a committee hosted by the BOE that serves as a forum for discussing industry issues. Mr. Ramchandani couldn't be reached for comment.


The presence of several of these traders on committees related to the central bank has raised questions over whether BOE officials were aware of how bank traders have operated, particularly regarding how they trade and what information they share in the run-up to benchmark snapshots of rates that are captured at 4 p.m. London time on each working day.


As The Wall Street Journal reported in December, the examination of banks' records do appear to show some efforts at collusion, people familiar with the matter say.

But nothing to worry about - the BoE has investigated and it's all clear (Via Bloomberg),

The BOE is probing allegations officials condoned practices at the heart of a widening rigging scandal involving traders at the world’s largest banks. It said today the investigation has found no evidence to date its employees were involved in collusion.




The suspended individual, who wasn’t named, is being investigated and “no decision has been taken on disciplinary action.”




At a July 4, 2006, meeting led by BOE chief dealer Martin Mallett, attendees discussed “evidence of attempts to move the market around popular fixing times by players that had no particular interest in that fix,” according to the minutes. “It was noted that ‘fixing business’ generally was becoming increasingly fraught due to this behavior.”


In a May 2008 meeting of the subgroup, a “large majority” of those present expressed “concern about the lack of transparency among some methodologies and the impacts in managing order flow and pricing liquidity at times of concentrated benchmarked interest such as the 4 p.m. London fix.




At that discussion “it was suggested that using a snapshot of the market may be problematic” and “could be subject to manipulation,” according to the minutes.




“This extensive review of documents, e-mails and other records has to date found no evidence that Bank of England staff colluded in any way in manipulating the foreign exchange market or in sharing confidential client information,” the central bank said in today’s statement. “The Bank of England does not condone any form of market manipulation in any context whatsoever.”

It appears, however, that the BoE, once it began tto feel the pressure of investigation, ended its regular "meetings" with FX dealers (via Reuters),

Regular meetings between Bank of England officials and top foreign exchange dealers in London were discontinued in February last year, the BoE told Reuters on Wednesday.


This last meeting of the Foreign Exchange Joint Standing Committee's chief dealers subgroup (CDSG) took place four months before media reports of allegations of currency market manipulation.


The CDSG, held under the auspices of the BoE to discuss industry issues and usually chaired by the Bank's chief dealer Martin Mallett, last met at the Bank of England's offices in Threadneedle Street in London.

So arm's length now and back to business as usual, nothing to see here... we are sure the suspension of the staff member is for stealing too many paper clips or too much personal phone use...

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Wed, 03/05/2014 - 10:21 | 4511333 Boris Alatovkrap
Boris Alatovkrap's picture

Wonderous Joyous, Boris is first comment... but is without speaking entirely.

Wed, 03/05/2014 - 10:25 | 4511337 GetZeeGold
GetZeeGold's picture



We were gonna kill the first poster....looks like that's you. Not that we did anything wrong that is...or even you for that matter.


Now that the meaningless sacrifice has been's back to business as usual.

Wed, 03/05/2014 - 10:31 | 4511377 outamyeffinway
outamyeffinway's picture

The story of our times.

Wed, 03/05/2014 - 10:41 | 4511419 Buckaroo Banzai
Buckaroo Banzai's picture

"Dead men tell no tales."

Well, now that this is wrapped up, I guess that'll be the end of the recent wave of FX banker deaths.

Wed, 03/05/2014 - 11:03 | 4511556 Thought Processor
Thought Processor's picture



Unfortunately it looks like the right people (ie the good guys) were silenced.


This is depressing.

Wed, 03/05/2014 - 11:45 | 4511799 Manthong
Manthong's picture

And in other news, Charles Manson concluded that he had no role in the Tate massacre.

Wed, 03/05/2014 - 10:28 | 4511366 LawsofPhysics
LawsofPhysics's picture

Dobrayootra (or something like that).

LOP wonders what Boris has to say about this;


Wed, 03/05/2014 - 10:50 | 4511461 HungryPorkChop
HungryPorkChop's picture

The Fox is Guarding the Hen House. 

Wed, 03/05/2014 - 13:13 | 4512282 KickIce
KickIce's picture

Nothing to see here except a hole in the fence, a few eggs missing and some chicken feathers swept underneath the rug.

Wed, 03/05/2014 - 10:24 | 4511345 Kavklov
Kavklov's picture

Someone bring their NEMESIS 


SOROS. lolololol

Wed, 03/05/2014 - 10:24 | 4511347 BeetleBailey
BeetleBailey's picture

The FX market is too big to be manipulated by one entity or person....


oh....fuckin WAIT....

Wed, 03/05/2014 - 14:55 | 4512322 RaceToTheBottom
RaceToTheBottom's picture

The marketplace will regulate the wrong-doers....


Wed, 03/05/2014 - 10:25 | 4511350 youngman
youngman's picture

funny how that wrondoing...nothing here..move along

Wed, 03/05/2014 - 10:28 | 4511362 Winston Churchill
Winston Churchill's picture

It is no wrongdoing .Its actually their job.

Doing The Lords  work, Lord Rothchilds that is.

Wed, 03/05/2014 - 10:27 | 4511356 LawsofPhysics
LawsofPhysics's picture

(meanwhile in banks everywhere)

The masses are starting to believe their "lying eyes", quick sacrifice someone!

Wed, 03/05/2014 - 10:28 | 4511365 Theta_Burn
Theta_Burn's picture

Not one of these "employees" fucken backs anything up?

crime after crime and we have to supoena company archive emails to get 1/2 truths?!?!

Has nobody learned from Snowden?

Wed, 03/05/2014 - 10:29 | 4511367 Racer
Racer's picture

In other words, they managed to delete/shred all the evidence just in time

Wed, 03/05/2014 - 10:32 | 4511375 Zero-risk bias
Zero-risk bias's picture

The investigators should have taken a drill to the computers anyway, incase that they had some encrypted e-mails.

Wed, 03/05/2014 - 10:32 | 4511382 orangedrinkandchips
orangedrinkandchips's picture

"nobody move, nobody get hurt (blast)....nobody move, nobody get hurt"....BOE (aka NWA)

Wed, 03/05/2014 - 10:33 | 4511384 Oldwood
Oldwood's picture

After making a thorough review of myself, I find myself above and beyond reproach. I may actually be GOD, but I'm not looking for contrary opinions. If you do not agree with my conclusions you are simply a fringe wacko with a conspiratorial agenda, and you may also be a racist...maybe.

Wed, 03/05/2014 - 10:37 | 4511405 Winston Churchill
Winston Churchill's picture

You can't be , because I am.

Wed, 03/05/2014 - 14:11 | 4512336 RaceToTheBottom
RaceToTheBottom's picture

So tell us God, just what is Blankfein doing for you?

Wed, 03/05/2014 - 10:37 | 4511387 medium giraffe
medium giraffe's picture

We all know the Old Lady doesn't wear any knickers, any attempt to convince to the contrary is futile.

Wed, 03/05/2014 - 10:39 | 4511409 NoDebt
NoDebt's picture

"evidence of attempts to move the market around popular fixing times by players that had no particular interest in that fix,”

You're kidding me, right?  First rule of cheating- don't get caught.  You have somebody do it FOR you.  Does anyone really believe that there is market-moving behavior for NO reason?  For NOBODY'S benefit?  Then why do it at all?

This is a CLASSIC white-wash routine.

Wed, 03/05/2014 - 10:39 | 4511413 Cognitive Dissonance
Cognitive Dissonance's picture

"Evidence" is a legal term and is strictly defined.

It doesn't mean nothing was 'found'.

Wed, 03/05/2014 - 10:56 | 4511448 Element
Element's picture



I agree, this wording smells fishy;

"It said today the investigation has found no evidence to date its employees were involved in collusion."

The emphasis is on colluding, all the way through, and is not denying evidence of malfeasance, which is a good way of side-stepping it. Seemingly no issue to answer. I suspect there may be, or else the wording would have been less ambiguous.

The "to date" part is also suspicious, why put that in there at all?

Such statements have carefully chosen wording.

Wed, 03/05/2014 - 10:40 | 4511416 lovejoy
lovejoy's picture

What would you expect them to say. Even if the reason for the FX Fiddle was not an underlying BOE objective to support markets (and in turn market makers) and a lone wolf was responsible, it would open up the BOE to enormous liability. Every person who has lost money in fx over the last say 5 years would be joining a class action lawsuit seeking compensation. Carl Sagan would say "billions and billions" of dollars. I don't know if the BOE has immunity, but even if it does, the mere fact that it was somehow involved in the FX Fiddle would destroy confidence in the central bank. So the lies will continue, and will do so forever.

Wed, 03/05/2014 - 10:50 | 4511460 Sandmann
Sandmann's picture

The B of E is the Cockpit of Corruption and Larceny

Wed, 03/05/2014 - 10:50 | 4511447 Carbon Beach
Carbon Beach's picture


Wed, 03/05/2014 - 10:49 | 4511455 Sandmann
Sandmann's picture

THe Old Lady of Threadneedle Street is a courtesan sleeping with Syphilitics in The City. The whole charade has always been a fraud against the public and is built upon the profits of the opium traders of the East India Company. Noone expects anything more than whitewash - Chilcot Enquiry is the political equivalent




Wed, 03/05/2014 - 10:53 | 4511474 Calculus99
Calculus99's picture

The British have a habit of finding no wrongdoing right at the top.

Wed, 03/05/2014 - 10:59 | 4511486 tony wilson
tony wilson's picture
The Empire of "The City": The Secret History of British Financial Power by ec knuth

and the many books by eustace mullins and

Antony Cyril Sutton

could of explained rothschilds private city of london to you 30 years ago

what what


for suberb insight into the backers and bankers of hitler mr sutton has some interesting tales.

Wed, 03/05/2014 - 11:05 | 4511566 El Hosel
El Hosel's picture

Nobody could have seen this coming, or going.

Wed, 03/05/2014 - 11:21 | 4511656 ziggy59
ziggy59's picture

They didnt need to collude..they followed instructions...

Wed, 03/05/2014 - 11:34 | 4511723 Colonel Klink
Colonel Klink's picture

Of course they didn't find any, just like there's no PM market manipulation, not a smidge of scandal at the IRS, and government serves the common man's interest.

Checks in the mail, I won't pop in your mouth, and if you like your insurance you can keep it.

Wed, 03/05/2014 - 13:10 | 4512266 Save_America1st
Save_America1st's picture

"suspended" or "suicided"?  Maybe he was "suspended" over the top edge of a 30+ story building before he was thrown/jumped off.

Wed, 03/05/2014 - 13:23 | 4512341 detached.amusement
detached.amusement's picture

This is basically the same thing as Penn State finding Sandusky or Mann did absolutely nothing wrong.

Wed, 03/05/2014 - 14:29 | 4512684 LordAarioc
LordAarioc's picture

Another slap on the wrist and no jail time away they  should go.

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