Bank Of England Restructures After FX Probe But Not Responsible "For Hunting For Rigging Of Markets"

Tyler Durden's picture


"We can't come out of this with a shadow of doubt about the integrity of the Bank of England," Governor Mark Carney told MPs this morning on the heels of the report, as we noted here, that found no collusion by the bank to manipulate FX rates. A senior BoE employee was told of "attempts to move the market" but "did not convey to [Monetary Policy Committee member Paul Fisher] that markets were being rigged," and therefore was suspended. While many have called this "as bad as Libor" the BoE remains adamant of its lack of involvement but is still restructuring itself - adding that "it isn't our job to go out hunting for rigging of markets." Nope, just to ignore it, we presume. MPs were not impressed.


Via The BBC,

The Bank of England will restructure following claims that some of its officials knew about alleged foreign exchange rate fixing.


Governor Mark Carney told MPs on the Treasury Committee that it would create a new deputy governor position with responsibility for markets and banking.




But he said it had no warning of the alleged manipulation before October.


The Bank currently has three deputy governors, with responsibility for monetary policy, financial stability and prudential regulation.


The Treasury Committee hearing was aimed at finding out what Bank officials knew of the alleged foreign exchange rate fixing claims.




Mr Carney said it had no information that anyone from the Bank condoned, facilitated or took part in market manipulation.


"We can't come out of this with a shadow of doubt about the integrity of the Bank of England," he added.




The bank said there was no evidence its staff had colluded to rig the market.




The minutes of meetings from 2006 were published last Wednesday following a Freedom of Information request.


They show that a senior member of the Bank of England's staff was told of "attempts to move the market" at a meeting with senior foreign exchange dealers from some of the world's largest banks.


Traders are alleged to have communicated with each other to agree the rate of exchange for foreign currency deals.


It is thought some traders may have used online chat rooms to set a benchmark for currency trades.


Andrea Leadsom said that the minutes should have set off alarm bells.


However, Monetary Policy Committee member Paul Fisher, also appearing in front of the committee, said those minutes "did not convey to me that markets were being rigged".


"It isn't our job to go out hunting for rigging of markets," he adds.

But, as Bloomberg notes, this is far from over...

Uk Treasury Committee Chairman Tyrie Says Early Signs From Boe Response To Fx Rigging Allegations Are Not Encouraging

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Tue, 03/11/2014 - 12:41 | 4534632 Winston Churchill
Winston Churchill's picture

It is their job to rig the FX market though.

Isn't that what CB's do ?

Tue, 03/11/2014 - 12:52 | 4534677 Fix-ItSilly
Fix-ItSilly's picture

By US law, the rigging of foreign exchange is the responsibility of those elected - specifically the US Treasury.  I'm not saying that is how it works, but that is how it is legislatively defined.

Tue, 03/11/2014 - 12:56 | 4534691 Thought Processor
Thought Processor's picture



And the Bank of England most certainly has no connection to all those dead bankers.  What ever you do don't get that idea.   


Move along.

Tue, 03/11/2014 - 13:16 | 4534743 nope-1004
nope-1004's picture

Queen Carney is a Goldman Sachs alumini.  He's paid to lie, paid to mislead, and paid to manipulate.  That's what CB's do.....  The press release stating otherwise is nothing but a public recording of him "having no knowledge" of the event if and when this blows up.


Tue, 03/11/2014 - 13:37 | 4534861 max2205
max2205's picture

And the criminals go free. ..what a joke...what an example

Tue, 03/11/2014 - 13:42 | 4534882 Manthong
Tue, 03/11/2014 - 13:26 | 4534796 Dollarmedes
Dollarmedes's picture

Funny thing is, only Americans give Brits the benefit of the doubt because their accent sounds so refined. That doesn't work on other Brits.

Tue, 03/11/2014 - 13:53 | 4534935 SAT 800
SAT 800's picture

Too right it don't, Mate. Often over-looked, but very true.

Tue, 03/11/2014 - 13:59 | 4534960 TruthInSunshine
TruthInSunshine's picture

How can you 'ave any black pudding if 'ya don't eat yer steak & kidney pie?

Tue, 03/11/2014 - 14:32 | 4535112 Kirk2NCC1701
Kirk2NCC1701's picture

The Queen doesn't care about dead bankers either, as long as she gets her Precious.

Tue, 03/11/2014 - 12:59 | 4534699 TaperProof
TaperProof's picture

Banks don't "rig" , they "make markets"


Tue, 03/11/2014 - 13:55 | 4534942 SAT 800
SAT 800's picture

No comment. LOL. I suppose so; but you're not supposed to notice this ! laughing too hard to type.

Tue, 03/11/2014 - 12:42 | 4534634 the not so migh...
the not so mighty maximiza's picture

"It isn't our job to go out hunting for rigging of markets, just to rig them to our best ability"

Tue, 03/11/2014 - 12:42 | 4534635 Ban KKiller
Ban KKiller's picture

Laugh of the day so far...

Look, over there! Squirrel!

Tue, 03/11/2014 - 12:42 | 4534637 Yoki
Yoki's picture


We have investigated and found that the mere fact of investigation suggests we should change how do things so that no further investigations can be done in the future.

Oh and to the rest, FU

Tue, 03/11/2014 - 12:42 | 4534638 buzzsaw99
buzzsaw99's picture

hang the central bankers. all of them.

Tue, 03/11/2014 - 13:15 | 4534747 Kaiser Sousa
Kaiser Sousa's picture


Tue, 03/11/2014 - 14:20 | 4535064 Kirk2NCC1701
Kirk2NCC1701's picture

Just asking:  How did that work out for Jesus?

Tue, 03/11/2014 - 12:45 | 4534647 Theta_Burn
Theta_Burn's picture

Glad to see the Brits, kick ass and lay the zero tolerance smack down..

I hope they serve at least 85% of their jail terms..

Tue, 03/11/2014 - 12:46 | 4534648 fooshorter
fooshorter's picture

I LOL'd.

Tue, 03/11/2014 - 12:46 | 4534649 Son of Captain Nemo
Son of Captain Nemo's picture

"it isn't our job to go out hunting for rigging of markets." Nope, just to ignore it, we presume. MPs were not impressed."...

And there you have it!

Tue, 03/11/2014 - 12:46 | 4534650 jmcadg
Tue, 03/11/2014 - 12:49 | 4534661 discopimp
discopimp's picture

"I don't have to show you NO Stinking Badges!!"

Tue, 03/11/2014 - 12:50 | 4534666 Fix-ItSilly
Fix-ItSilly's picture

Does the BOE establish swaps as do the Federal Reserve and ECB?  If so, then they are manipulators in foreign exchange.

Tue, 03/11/2014 - 12:50 | 4534668 maneco
maneco's picture

"The Bank deals in the foreign exchange market as part of its day-to-day management of the "Exchange Equalisation Account" - which holds the UK's foreign currency and gold reserves. These reserves are owned by HM Government for whom the Bank acts as Agent. The Bank also operates in the foreign exchange market on its own behalf, and on behalf of customers."

You just need to look at the Bank of England's website:

The best place to hide something is in plain sight!

Tue, 03/11/2014 - 12:51 | 4534670 williambanzai7
williambanzai7's picture

Tue, 03/11/2014 - 12:51 | 4534671 Son of Captain Nemo
Son of Captain Nemo's picture

"it isn't our job to go out hunting for rigging of markets."
Governor Mark Carney

Wonder what would happen if we put this across the top of the WSJ tomorrow morning size 24 Bold?...

I'll answer that.  It probably would raise the DOW and S&P another 4%!

Tue, 03/11/2014 - 12:52 | 4534674 highly debtful
highly debtful's picture

I'm my own bank now, thanks to scum like this.

Tue, 03/11/2014 - 12:58 | 4534698 Cocomaan
Cocomaan's picture

That isn't your job?

What would you say... you DO here?

Tue, 03/11/2014 - 13:08 | 4534710 tony wilson
tony wilson's picture

in the rancid empire of the city of london the private concrete and brick island country within a sick island country.


here the children scream

under royal grounds by appointment




let us go

we wonte say any fing

please donte hurt us.


blood and life force are needed

it is rothschild

so it is so.

at least the kinder can rest a while while the demons upstairs spend saturn time

counting ukraine gold.

Tue, 03/11/2014 - 13:32 | 4534832 smacker
smacker's picture

How can Carney claim that the BoE is not involved in rigging FX markets??

I thought the BoE's UKP 375 billion QE was partly about rigging FX markets. Then there's Zirp.

Rigging of FX markets by the BoE has been going on for decades.

Tue, 03/11/2014 - 13:34 | 4534839 Notsobadwlad
Notsobadwlad's picture

Funny, I thought that there was some expectation that those tasked with regulating actually did their job to regulate ... and if not they get fired and sued.

Tue, 03/11/2014 - 13:38 | 4534862 TORNasunder
TORNasunder's picture

I love it when an organization accused of wrongdoing does an internal investigation and finds no wrongdoing. But just in case sets up an internal group to keep itself in line.

"Don't worry" says the Hen leader to the hens, we now have MORE foxes guarding the hen house for your protection!

On an side note the investigation continues into the mysterious disappearance of Francis and Gwendolyn last week. Chief Fox says fowl.. oopps foul play is not suspected at this time, and the copious amounts of blood found at the back gate on the night of the disappearance is certainly unrelated.

Tue, 03/11/2014 - 13:43 | 4534889 Joebloinvestor
Joebloinvestor's picture

The UK stopped manufacturing anything of substance years ago because they couldn't compete.

Now as a "financial hub", they manufacture banking scandals.

Tue, 03/11/2014 - 14:35 | 4535131 Kirk2NCC1701
Kirk2NCC1701's picture

+1.  That's good:  Accurate, succinct and 'spot on'.

They'd be really pissed if they lost that crown to Frankfurt, and be left with tattered old theater robes.  Hence they don't want an EU that's too strong.

Tue, 03/11/2014 - 15:01 | 4535247 All is chosen
All is chosen's picture

British Marketing & Peasant Control Services present their greatest successes:

Saxe-Coburg and Gotha = 'Windsor' 

Land owners = 'Farmers' (when there are handouts available)

'Rothschild UK' = 'Bank of England'

These three have stood the test of time.


Tue, 03/11/2014 - 17:19 | 4535789 Remington IV
Remington IV's picture

restructure = shred evidence

Tue, 03/11/2014 - 18:35 | 4536009 Peter Pan
Peter Pan's picture

A good choice of words.




Tue, 03/11/2014 - 18:31 | 4535990 Peter Pan
Peter Pan's picture

I agree that you can't go out hunting for rigged markets when you are in fact actually breeding them.


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