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Bank of England Fires Chief FX Dealer Participating In Currency-Rigging Scandal
Early in 2014, when the FX rigging scandal was still news, one of the most disturbing developments to emerge was that none other than the venerable Bank of England itself had been engaged in collusion with various manipulating parties, explicitly those participating in "The Bandits Club", "Cartel" and other chatrooms, as described in "Bank Of England Encouraged Currency Manipulation By Banks." As Bloomberg reported at the time:
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.
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.
Of course, the Bank of England promptly denied everything and pulled the Hogan's Heroes defense: "It knew nothing", and yet something stank.
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.”
Today, as widely reported previously, 5 banks settled with regulators such as US CFTC, UK's CFA and Swiss Sifma, for a total amount of $3.3 billion ($1.4 billion to the CFTC, $1.75 billion to the CFA). The banks were:
- HSBC Holdings PLC
- Royal Bank of Scotland Group PLC
- UBS AG
- Citigroup Inc.
- J.P. Morgan Chase & Co.
Hilariously, as a result of "cooperating" the 5 banks received a 30% discount on their British settlement. Because when it comes to admitting one's crime there is apparently a pre-Thanksgiving blue light special.
Oddly enough, none of the other usual suspect banks, such as Goldman, Credit Suisse or Deutsche, all of whom also fired legacy FX traders and dealers, were once again completely forgotten, because clearly one can't disturb the two banks that pull the strings in the US, Goldman, and in Europe, Deutsche.
However, one less than critical bank stood out: as Bloomberg reports, Barclays dropped out due to issues with New York regulators, according to a person with knowledge of the matter. “After discussions with other regulators and authorities, we have concluded that it’s in the interests of the company to seek a more general coordinated settlement,” the London-based bank said in an e-mailed statement today.
By missing the full reduction on offer from U.K. regulators, Barclays may have to add to the 500 million pounds it set aside in the third quarter to settle currency probes, Sandy Chen, an analyst at Cenkos Securities Plc with a sell rating on the stock, said by e-mail.
“If you settle outside of stage one, which is the earliest stage, which is what this is, you get a 30 percent discount,” McDermott said at a press conference in London today. “If you settle outside of stage one you get a 20 percent or 10 percent discount.”
The New York Times reported Barclays’s perceived complications with the U.S. state’s regulator earlier. Barclays was concerned about civil liabilities and the potential of having its New York banking license revoked, the Times said.
Which means that the bank that consumed what was left of Lehman may be Lehmaned itself and soon be barred from operating in the world's financial capital, something which all of its revenue-strapped competitors will be delighted by.
But back to the Bank of England, which it turns out, lied about its involvement in FX rigging. According to Bloomberg, alongside the FX settlement announcement, the Bank of England fired its chief currency dealer - the abovementioned Martin Mallett - a day before he was faulted in an independent investigation for failing to alert his superiors that traders were sharing information about client orders.
Martin Mallett was dismissed by the Bank of England yesterday for “serious misconduct relating to failure to adhere to the Bank’s internal policies,” according to a statement by the central bank today.
Mallett, who worked at the bank for almost 30 years, had concerns from as early as November 2012 that conversations between traders right before benchmarks were set could lead to the rigging of those rates, according a report today by Anthony Grabiner, who was commissioned by the central bank to look into what its officials knew about practices under investigation around the world. Mallett was “uncomfortable” with the traders’ practices, yet he didn’t escalate these concerns, Grabiner said.
“We’re disappointed because we hold ourselves to the highest standards -- we have an outstanding markets division,” BOE Governor Mark Carney said at a briefing in London today. “What Lord Grabiner found was that our chief dealer was aware of circumstances in the market that could facilitate or lead to improper behavior by market participants.”
And then just to keep the ball rolling, the BOE lied again!
Mallett “was not acting in bad faith,” according to the Grabiner report. He wasn’t “involved in any unlawful or improper behavior, nor aware of specific instances of such behavior,” it said.
Reuters adds, that the dismissal was unrelated to an ongoing foreign exchange scandal "This information related to the Bank's internal policies, not to FX,” a BoE spokeswoman said on Wednesday. So... the Bank's internal policies on FX rigging?
Of course, Mallett's fate was sealed long ago when it became clear we was the man most directly implicated with rigging at the BofE. This is what the Times wrote in March:
Obscure prodigy poised to become centre of attention
Martin Mallett is not well-known outside the arcane circles of foreign exchange traders, but, along with the senior Bank of England officials Paul Fisher and Andrew Bailey, the public are likely to hear a lot about him in the coming months.
The Bank released 180 pages of minutes yesterday taken from meetings of a committee of senior currency traders that Mr Mallett chaired.
It was at one of the committee’s meetings in 2012 that Bank officials allegedly condoned the practice of sharing inside information before trading on the markets.
But back to the reason for Mallett's termination: we don't get it: was he fired for not rigging the market then according to the BOE's joke of an explanation?
Actually, scratch that: we do - Mallett's only crime was being exposed in the papers, and with that highlighting that the biggest ringleader when it comes to rigging markets is none other than the central bank itself. Which may have shocked someone in 2009 but now that even the CME openly admits foreign banks are among the biggest traders of the E-Mini, hardly anyone will notice.
And now we look forward to the next batch of revelations - the gold rigging scandal, and its prompt settlement for a few thousand dollars - and finding out how many central banks will fire personnel for not rigging that particular market.
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Martin Mallett was dismissed by the Bank of England yesterday for “serious misconduct relating to failure to adhere to the Bank’s internal policies,” according to a statement by the central bank today.
No jail?
precious metals related fine is included in this round of fines
http://www.bloomberg.com/news/2014-11-12/finma-s-ubs-foreign-exchange-settlement-includes-precious-metals.html
I would have nail-gunned the SOB....but that's just me.
poor guy ... he has just been carrying orders ... yeah well, c'est la vie
Every fucking day a new crook. Can't we just round these fuckers up and execute them wholesale?
We have some.....but no one seems to be learning from it.
Maybe we should stop reporting them as suicides.
Every time I see a BOA story the scenes from inside the bank in Mary Poppins springs forth. They do all look like they are capable of floating.
Steal $20 and you go to jail. They are not dumb enough to steal small amounts of money.
He'll walk into a Bank Reuglation job with the gubmint for a few years until the dust settles ... then waltz back thru the swinging corp-gubmint doors back into the financial industry.
It's almost "paradoxical!"
Drawn and Quartered
Even if you got all the current crooks, new crooks would rise to the top and take over. The system they use to steal and control must be destroyed, only then will there be change for the better.
Just like all the Nazi bastards at the Nuremberg trials. I prey these fuckers meet a similar justice, or at least a group as competent as the Mossad stalks them to the ends of the earth.
funny ... what about if he was carrying their orders ... ever thought about that?
no jail ?
for this type of humans, be in prison is just returning to normal civilian state/condition. ( ie: no control )
so these banks steal money, right? Like hundreds of billions of dollars, right? Then they're fined billions of dollars after the fact.
Q: Who gets all those billions of dollars that they pay back in fines?
I know I haven't received any big fat check in the mail from any regulator or bank for their admitted criminal FX, LIBOR, mortgage, or precious metals market rigging which costs me dearly every fucking day.
Probably the Bank of England!
It goes to the government treasury, who then deposits it in the Bank of England, who then uses it to finance currency-rigging.
I'd have used a mallet, just for shits and giggles.
"It's like handing out speeding tickets at the Indianapolis 500"
No suicide?
fox guarding the hen house, ha, this fucker is just a sacrificial lamb. back to the program plez.
.
+1
Couldn't have said it better myself.
thanx, as you articulate your thoughts quite well...
"Blood, lamb's blood painted door, I shall pass."
They have to get it from somewhere, why not this guy.
pods
Please be patient. The headline has to read, "Ex-Bank of England Exec Commits Suicide."
Step one complete.
Hope he doesn't convert to Islam just before that otherwise it can get explosive.
He received a suicide "discount" for being the first to go quietly. The next guy who tries to whistleblow will get the full nail-gun treatment
"But, but....how are we supposed to make money if we can't rig the market!"
/sarc
This morning on Bloomberg radio someone suggested that bankers need to go to jail for change, and the retard who hosts the cut him off and insisted thats not the solution. Who would have thunk
Whoah! Let's not get carried away. That would imply the existence of the Rule of Fucking Law.
Do I need to apply my sarcasm flag here?
Maybe he helped to 'provide liquidity' so he's a good guy then.
Sacrificial lamb to appease the public. The corruption goes to the top.
Corruption is another name for Central Banking today.
When it gets that high up, its not corruption anymore.
Something to do with thin air, and bankers being able to create money out of it.
The CB's have the blessing of the state, thus it is not illegal. Case closed. Essentially they are the state.
soooo, hmmm, what next, tolerate? seems as though the power of the printer prevails beyond ability of the majority to effectivly change. closed loop of power. ignorance is becoming the only option to live a best life once this knowledge is burned into the brain...
Well you cannot change anything unless you have enough money to hire enough mercenaries with uniforms to enforce it.
Or you have a tribe that will stick with you but they have essentially destroyed the family. You are lucky if just your wife and kids can look after you. Hanging out with cousins and shit is so backward.. so tribal...
beyond frustration, like discussing something with wife when she goes silent and give me the look. key to this thought is i am right and she is wrong. moar one explains the moar the other gets pissed. ok, ok, in the case of these overlords, we are right and are getting the ignore treatment as we are outside their jurisdiction of fascism. plain and simple-violence is the ONLY way to penetrate this structure. moar anger plez, then we are heading to the only way to change their control...
"Case closed. Essentially they are the state."
I'm not sure why they call it the Deep State when it is right on the surface.
Misdirection.
They always come up with interesting terms when you try to point out the obvious truth.
"When it gets that high up, its not corruption anymore."
When it goes that high up (to the Governor of the Bank of England), they call it 'National Security'.
Exactly, until we get the head there is no change. There are certain lizards that are able to lose their tails to throw off predators and can later regenerate the tail when the danger has passed.
On UBS : RTRS - SWISS REGULATOR FINMA SAYS IT FOUND CLEAR ATTEMPTS TO MANIPULATE PRECIOUS METALS BENCHMARKS DURING UBS PROBE
That was on Reuters in the morning.
Wonder where they found a financial microscope powerful enough to reveal that little nugget?
Yea, that's news
If you read the fine print the BoE says what this guy did was not illegal, but not good, and that NO BoE official was involved in this sordid affair. In other words the BoE's hands are clean.
Right, and there's always only ONE termite!
Well.....that's a relief since I live in a log cabin. ;-)
Hurry. Switch to concrete logs.
I do believe Mark Carney is on his way to change his name by deed poll to Pontius Pilate.
"Mallet, old chum, you're one of us, but the papers...well, it just won't do.
See my friend in Switzerland, have a vacation with the family, and I'm sure he'll take very good care of you."
Dont forget to have a look @ all the Nazi currency, when you reach the bottom of the lake.
BBC reported the bank fines were total of about 3.5 Billion. That's bullshit! Nobody is going to jail! The fines are paid by the shareholders and public.
We want Jail! When do we want it? Now! Jail! Jail! Jail!
How many went to jail for abducting people from their homes and making them work on the farms?
Save the taxpayers cost of jail expense, use a DHS hollow point bullet. Call it ROI.
nothing is illegal anymore
Keep saying that as you break an EPA 'law' by say, burning some natural debris in your back yard.
Or collecting rain water or feeding a hungry...
nothing is illegal anymore
Unless you're Martha Stewart....that's the last person I've seen prosecuted.
Have they sentenced Roger Clemens yet?
pods
They're trying to unwind the lawyers to see who wins......it could be a while.
Not really.
Everything would be illegal if you would try them :)
nothing is illegal (for "them") anymore
Brings to mind the statement of Mr. Thompson in Atlas Shrugged about making everything illegal to control the people.
Except independence for the serfs.....
In better times, this maggot would be found, chased through the streets of London, beaten, gagged and strung up from the nearest lamppost.
Today, he gets to retire to the Caymans or some other topical retreat.
The stench is getting strong and close to the top of the chain. I await the day that central bankers are forced to flee for their very lives. The Dimons and Blankfiens are mere pawns, doing the bidding (no pun intended) of their masters.
The massive fines being parlayed against the major banks uncovers the desperation of governments, who need the money to finance their own felonious activities in lieu of lower tax income from the usual source. This is the sum of all fears, the result of defunding the middle class and all savers. Money must come from somewhere, so where better than to turn on their own masters, the banks, and even central banks.
With any luck, the MIC will dispose of the disease that is central banking and the serfs (us) can enjoy the fruits of their labors. Once again, FEUDALISM FOR THE WIN!
In better times, this maggot would be found, chased through the streets of London, beaten, gagged and strung up from the nearest lamppost.
Please do remind us of those times.
LULZBank, point taken. Those "better times" likely exist in my mind only, but perhaps we can write some new history.
Wishful thinking, I am aware, but we need to remain positive, and I am positive that the idea of chasing bankers trough urban streets, beating and hanging them does have a nice feel to it.
For now, we have to rely on nail guns, snow plows and tall buildings to provide accidental deaths.
Hey, maybe TPTB are doing our work for us. If that isn't "god's work" I don't know what is.
Blaming bankers is like blaming Satan for all our ills and actions.
We have all been asleep and negligent and irresponsible. Bankers and politicians did not force us into anything, we have all walked this path with our own free will. (Speaking in collective terms, not individual).
Our first mistake was accepting the banker fiat in exchange for our goods and services and our second mistake was taking on debt/mortgage to buy things we could not afford.
Now it will go full circle and come to the logical conclusion which might be as you say, chasing the bankers down the streets or it will fade away from our collective memories as we get busy trying to survive.
At the end of the day, an individual is responsible for his/her actions, nothign more nothing less and try to make amends where one was wrong.
Bankers lining up on the Broad Street gibbet. Perhaps a mobile gibbet is in order. First Goldman Sachs, then JT Marlin, then . . .
Well said. The pandemic planning group knows that Mr. Fear lurking under your bed no longer works.
We either take out these falsified terrorist in Langley or they will continue to mastermind new scary bed stories.
It all comes back to the US banking system that is insolvent. We have major issues about how the United States of America presents itself to the Global Community.
Fuck off Bank of International Settlements. The only bullshit motivation of finding blame is you looking into the mirror. This crux of shear cocky pox comes your way. Welcome it, get fucking beat down and your family endangered.
Not a threat by me, gentle warning of central planning policies you signed off on. Don't think any army will protect you from the uproar.
If it is lucrative, the activity will ALWAYS go all the way to the top of a profit-driven organization.
Bravo. Now, begin unraveling the systematic fraud that occurred in FX scandal. Start taking down the silent teammates.
Over 3 million refugees have fled Syria, 10 million others displaced as new peace plan proposed
http://wtfrly.com/2014/11/12/over-3-million-refugees-fled-syria-10-milli...
can we assume they will all be sending Obama Christmas cards as he is directly responsible for this!
Obama has a dream where he's standing in sun drenched robe with Pan American children throwing little pickles at him.
ISIS going on Gold Standard. Is not going to like this.
Getting caught was not in the contract.
Boy oh boy ,guys like that ususally dont live long to tell thier stories, specially after they were cut from the top of the chain
Now he has a reason to commit suicide (at least thats is what they r going to sell us, dead men dont talk)
My guess is that will only happen if he appears to be a threat to tell the truth.
How does one translate "Jolly Good show" in Hebrew?...
Kristallnacht
budumpshh!!
And why don't they throw his boss in jail?
Yes, tell me again JUST who gets the fine monies.
No jail, peanuts in fines and probably
Back in business tomorrow doing the same thing WITH A TWIST.
Most likely he was a whistleblower who brought the activity to the attention of his superiors who were in fact actually supervising the illegal activity.
Then he either did not document and effectively protect that documentation or was given a deal to leave and keep quiet ... probably both.
Bankers = Mini mob
Govt. = Big Mob
Mini mob making good money shaking down its 'customers'.
Big mob finds out and so shakes down the mini mob for its cut.
Everyone gets paid at the top, trebles all around etc.
That's basically how things work these days isn't it?
"nothing is illegal anymore"
Even murder is allowed.
Eric Holder's Just-Us department said in public he was wasn't going to prosecute.
The firms get to deduct this from their taxes as the normal cost of doing business.
Ven ze smell in the banksta kitchen gets to be like stale cabage and festering garbage, ve are truly in ze vorrrrld of garbage in-garbage out City smells.
Auf wiedersein mein FX wanker.
That the once hallowed-- now harrowed by bankstas--corridors of Whitehall and Whitechapel be the places where cooking n fixing is like a roman orgy is something that should be worrisome for Cameron's coterie of scions used to the playing fields of Eton.
Whaaaat? He is wicked, cocked and locked, crooked leg before wicket?
And he got caught at it! Thats just not Cricket nor is it a Croquet Mallet, more a casino Martingale.
Mind the nail-gun Marty...
Obliteration under way.
Even Bank of England is not being spared.
It is obvious to me that the WORLD has given precise threats of walking out of the system if the plundering from the banks continues.
TRIPLE LEHMAN
Bullshit. One schmuck at Bank of England is nothing compared to the theft that has occured and is ongoing.
World is quitting. There is no other option.
Even politicians no longer have any gain to help out an insolvent lobby.
Just the patsy.
What about Paul Fisher and Andrew Bailey. What about Merv the swerve? What about Carney the cunt?
CRIMINALS ONE AND ALL.
How do I sign on to the lawsuit???????
What I find amazing in today's world is that the IRS can find out if you left off a $500 gain from a stock trade, yet no regulators seem to be able to find out who dumps $5 billion in gold futures into an illiquid market at 2:30 in the morning! Or rather, the truth is slowly coming out that the regulators know exactly who is ramping up USDJPY and other big trades - and either fail to take any action or are in on it themselves!
Just wondering when Mark Carney is going to jump.
Jump for the gherkin Mark - make history!!!
Carney is a soulless and shameless asshole, he would never do that. Thats why he got that job, his ability to spout bullshit shamelessly, day in and day out.
Unless the headlines start reading "Bank of England executes chief FX trader...", nothing changes...
Golden fucking parachutes are not what I consider real fucking consequences.
OK....plan B it is.....no parachutes.
I'm a little fuzzy here......do they get to live?
That depends on the altitude from which they "jump."
Scrificial "Fall Guy!"
Real criminals to recieve millions in bonuses.
Disciplinary action? WTF?
What about prison time?
what about a public hanging?
One Hour Later....Hired by a HedgeFund(owned by Goldman) and given 10 Million Pound Salary!
Counterfeiting used to be an act of treason! Nowadays all Central Banks are at it. http://en.wikipedia.org/wiki/Treason_Act_1351
Q: Who gets all those billions of dollars that they pay back in fines?
A: All fines for UK financial misconduct were collected and the proceeds distributed amongst the major banks, yes you read that correctly! This rule has just been changed and all proceeds now go direct to the treasury......who in turn loan it to the banks at 0% interest.
They are still sacrificing the little fish.
The Matrix functions well.
They are still sacrificing the little fish. The Matrix functions well.
I'm sure they will end up paying a few cents on the dollar (or GBP) for their crimes.
hey get me a minion. lets hang him out to dry to take the blame. hehehe, the sheep will then thnk its a isolated case and let us off and we can continue our BS to the public. kekeke.
Jump Bankster Jump
Can anyone suggest good place to buy gold coins..??
From what I've read, the South African Krugerrand seems like the best way to go. Just looking for a reputable dealer with a reasonable mark-up.
Sold a condo and looking to finally dip into the gold market (along with buying puts on the XLF)....
Any help or insight appreciated....!!
http://www.coloradogold.com
Thanks....
<Bankers fix any and all markets
<Bankers only get a slap on the wrist.
which inspires less faith in the integrity of the "System".
Cable doesn't like that news... It looks like it's about to put in a new low for 2014.
Pay to play baby, pay to play.
What the hell is it with the blurry fake photos and fake names?
Just grainy enough to make out the features that it could be a golum
Mallet was hammered for the rigging scandal and in the end he took the hit
A lot of people seem happy that banks are fined and feel that justice is done. But is it really so? Who will at least pay these fines? Those who perpetuated these offences? Of course not. Ultimately these fines will be paid by the average citizen. It is their pension funds who as many are shareholders of these banks will ultimately pay through reduced dividends and and the average customer who will see interest rates in his or her loans short term and fees for services increase.