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Caught Rigging FX and Gold? Your Punishment Will Be A Bonus Capped At Just 200% Of Your Base Salary
Here are some more details on today's headline news: the banks' wholesale settlement to put FX-rigging in the rearview mirror. First example: if you ever saw your stops taken out from beneath your feet, thank your broker, JPM, which acted against its own clients to crush their stops.
From the FCA's JPM notice:
JPMorgan’s failings in this regard allowed the following behaviours to occur in its G10 spot FX trading business:
- Attempts to manipulate the WMR and the ECB fix rates, alone or in collusion with traders at other firms, for JPMorgan’s own benefit and to the potential detriment of certain of its clients and/or other market participants;
- Attempts to trigger clients’ stop loss orders for JPMorgan’s own benefit and to the potential detriment of those clients and/or other market participants; and
- Inappropriate sharing of confidential information with traders at other firms, including specific client identities and, as part of (1) and (2) above, information about clients’ orders.
From Reuters:
Dozens of dealers have been suspended or fired for sharing confidential information about client orders and coordinating trades to make money from a foreign exchange benchmark used by asset managers and corporate treasurers to value their holdings in the latest scandal to hit the financial industry.
They used code names to identify clients without naming them and created online chatrooms with pseudonyms such as "the players", “the 3 musketeers” and “1 team, 1 dream” in which to swap information. Those not involved were belittled.
Here is what they did in these chat rooms:
Traders in a chat room with net orders in the opposite direction to the desired movement at the fix sought before the fix to transact or “net off” their orders with third parties outside the chat room, rather than with other traders in the chat room. This maintained the volume of orders in the desired direction held by traders in the chat room and avoided orders being transacted in the opposite direction at the fix. Traders within the market have referred to this process as “leaving you with the ammo” or similar.
Traders in a chat room with net orders in the same direction as the desired rate movement at the fix sought before the fix to do one or more of the following:
- Net off these orders with third parties outside the chat room, thereby reducing the volume of orders held by third parties that might otherwise be transacted at the fix in the opposite direction. Traders within the market have referred to this process as “taking out the filth” or “clearing the decks” or similar;
- Transfer these orders to a single trader in the chat room, thereby consolidating these orders in the hands of one trader. This potentially increased the likelihood of successfully manipulating the fix rate since that trader could exercise greater control over his trading strategy during the fix than a number of traders acting separately. Traders within the market have referred to this as “giving you the ammo” or similar; and/or
- Transact with third parties outside the chat room in order to increase the volume of orders held by them in the desired direction. This potentially increased the influence of the trader(s) at the fix by allowing them to control a larger proportion of the overall volume traded at the fix than they would otherwise have and/or to adopt particular trading strategies, such as trading a large volume of a currency pair aggressively. This process was known as “building”.
Traders increased the volume traded by them at the fix in the desired direction in excess of the volume necessary to manage the risk associated with firms’ net buy or sell orders at the fix. Traders within the market have referred to this process as “overbuying” or “overselling”.
There are many more details and we will break them out shortly, but cutting to the chase, here is the punishment:
FINMA has also instructed UBS to limit bonuses for traders of foreign exchange and precious metals to 200 percent of their base salary for two years.
Which means that clearly nobody is going to jail, however the punishment is far more harsh: riggers will have a bonus of ONLY 200% their base salary for two years to look forward to!
The horror, the horror.
Which naturally means that base salaries across the rigging banks are about to soar to offset the tempoyrary bonus cap to the "keep the talent" happy. After all someone has to keep on rigging markets and generate bank revenue.
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FUCK....
Where's a short rope and a wobbly chair when you need one?!?!
Sweet guitar, gold just took off like a rocket! Have nailgun will travel.
you ain't seen nothing yet - just wait until late February
They still have lamp posts in Zurich. I can think of better solutions......
Your Punishment Will Be A Bonus Capped At Just 200%
Speaking of which.....does anyone know how much gold Martin Armstrong got away with?
Even if you do go to jail.....sometimes you can still win.
Totally sucks..... we need all those traders to spread the wealth around.
The oligarchy knows it needs a critical mass of market makers to continue "go along to get along" to keep the farce going a bit longer.
"gold took off like a rocket"..
Errr, not so much
Fuck me.....shut the fuckers down
Unfucking acceptable
Listen.
As long as they didn't limit the free coke and hookers, everything will be fine.
Almost as good a plan as a retired firefighter.
Fortunately, there is always the possibility to dramatically raise the base salary...
Bernie Madoff went to jail so that traders could keep on trading.
Damn shame.....the SEC tried to look away.....until they just couldn't anymore.
Take that as a lesson....never let it get to that point.
I'm thinking that when the unruly mob starts its attack they will unleash ebola and other assorted viruses - you know, crowd control
Their crime was getting caught. That is why they were fined. Work smarter next time.
The whole financial world is a racket. Skimming is the name of the game.
pods
@semperfi
What's mysterious thing is happening in late February? We all wanna know. :-)
wooden stake $75
rope $15
lighter fluid $10
bic lighter $2.99
burning these satanic motherfuckers at the stake - priceless
How do you expect them to afford cavier ?? wtf are they suppose to do??
The jails simply aren`t big enough!
Nobody will go to jail because the Government has promoted the manipulation. It was and it is legal in the same way that theft has become legal, but it is legal.
We'll see SHUTDOWNS of whole FX departments, forget about salaries.
We'll see a couple of primary dealers or major players go down, forget about salaries
Nobody will go jail. But there will be massive shutdown and collapses.
World now has learned the game. Hence the game is over
It' illegal to sin, but no one dies for doing it directly.
It is not criminally illegal, let's put it that way, otherwise Corzine would have gone to jail.
The law punishes people who break into houses but not FX rigging.
This is literally legalized theft.
The law is the one that is rigged
"Nobody will go jail." -- Hence, nothing will change as the same corrupt oligarchs will be calling the shots. Devolution (back to a robber-barron age and fuedalism) or revolution, pick one or one will be chosen for you.
Rigging is legal.
Banks are losing because the world no longer wants to work with them
A third scenario: Bank oligarchs becoming poor. They are insolvent
Solvency became fucking irrelevant a long, long time ago. Just look at the history of Japan and their credit line.
We are here again ---> The great questions of the day will not be settled by means of speeches and majority decisions but by iron and blood.
Japan is a different story. Yen is not world reserve currency. The game is totally different
Banks are surrendering in order to avoid assassinations. They had enough of staged suicides. That is my view.
Fuck ekm1, the earth is fucking insolvent. This is a global cartel.
World is quitting USA. Congress has no other option but to order another Lehman for dinner, as they did in 2008
You remain the optimist. I still do business in Russia and Brazil. Conditions on the ground there are still much worse for the "average" sheep. I don't see any "quitting" but I do still see a bunch of spoiled children in the U.S. who don't appreciate how good they have it.
Listen you two.
That was a spirited discussion.
and viruses
I guess I missed my opportunity!
The Horror...
http://www.youtube.com/watch?v=vxvDMWRG-gQ
...the Ho-Ho-Horror...
You can't make this fucking shit up.
I need some of the weed they are smoking when they make these decisions.
Its quite simple actually, "If I go down, I'll take you down with me, so be careful."
Listen.
FINMA has ex-traders working there. The revolving door hits no one in the ass.
Crime is sanctioned by the state in a fascist, police state. If you are carrying cash or gold in your own car, the police can legally liberate you from them. Over $2.5 billion liberated in the land of the free.
its well past time that all these types burn at the stake
That's a good one, but we feel the most "just" punishment for these vermin would be to toss them in a pool with a few hungry Great Whites. Of course, the fancy pools in Vegas would be ideal. We The People could enjoy a drink while wagering on how long the perp remains in one piece. Swim Nancy, swim!!!!
put me on the list for 8 tickets please, front row
the "police" are nothing but "agents of the system" - ie, Mr. Smith
it will (must) come to crowd behavior that gets "out of control" :)
at which time they fully unleash their array of viruses - ebola, etc
Please, please don't throw me in the briar patch.
As an old business major...I see this as a great business opportunity...you can make billions by fixing the market....but only have to pay a few million in fines when you are caught....and a few well placed donations to some politicians...seems like a small expense item to me...
good 'ol Thornton Mellon's first day in econ...
https://www.youtube.com/watch?v=YlVDGmjz7eM
You seem to know alot about politicians and their behaviors, again it takes one to know one, even if you were playing in the minor league.
And the question still remains...
Who will stop them?
No one, and you know why? Because no one really has the moral high ground or the Spirit.
It has always been like this, for the most part of the history.
Rest of the world knows. Americans and Europeans have been enjoying the freedom and prosperity because the Feudal Lords had rest of the world to loot and oppress. They are only waking up now as the Feudals have turned their eyes on them.
The Golden Age of Americans started when they stole the continent from Natives, and then expanded to steal rest of the world but now the world is broke and its going back to basics.
Sama as it ever was...
nothing changes until bankers and their political puppets start losing their heads and their stolen loot.
even then, things only change for a while as human greed is always present. This is simply more information on the "cost of doing business" today...
history just keeps on repeating - why is it that we claim we are so educationally enlightened, advanced - yet we keep repeating the same mistakes over and over and over - proves you just can't change basic human nature, ever - the evidence is right in front of everyone's face yet we bask in our self-made fog of denial so we can live in the Matrix
Technology certainly has changed and "life" has certainly evolved. My point was more in regard to the consequences of bailing out failure!!!
This is not how Nature or evolution improves, yet this is exactly what we have been doing. Time to reap what has been sown...
""nothing" changes until bankers and their political puppets start losing their heads and their stolen loot."...
"."
You need to raze the "Capitol" to save the Capitol!
. . . and if your CEO buys back a crapload of stock, your vested options will only increase the reward for a job well done
It really speaks to how worthless the exchanges are. And the charade of the daily P&L
they have no choice but get someone to the daylight but there is more to it for sure
we will find out soon
Standard bankler trick on this one is to raise the salary.
Heads they win, tails they win.
Heads the customer loses, tails the customer loses. Where are the customers yachts etc. That was said 100 years ago.
James Altucher is 100% correct, ALL of Wall Street is a scam, all of it.
Truly unprofessional experts. How could they use a scheme that is so easily revealed by a "regulator"? Cap those bonuses until a new and better manipulation scheme is in place. Get to work you sorry assed sons of bitches.
How generous. I picked the wrong profession.
Hanging is too good for these mfs.
New World Order = One world currency.
World currency will be justified by this action.
My crystal ball just told me that 2015 is going to see a lot of base pay raises for these guys....
It's because they have to retain the "talent"...
no dollar- no forex...
this shit is too bizarre to make up.
In the meantime if you have $2000 in your pocket while travelling thru New Mexico and a cop stops you, he/she will accuse you of drug trafficking with no proof, confiscate the money and perhaps your car, and if you dare say anything your sorry ass will be tossed in jail never to be heard from again.
Because fuck you, peon.
"It's like a license to steal. It's a license to do anything."
Henry Hill
Well, when they set a fair(er) field, trading should be less irksome .
But, those irksome moves do provide opportunities for the swift.
I'd rather a bent market was around to trade, than no market . But a fair market ? ooohhh come to daddy !
In the UK what about The Fraud Act 2006 ? cant they lock them up for conspiracy to commit fraud ?
Can't they regulate so no one has sight of customers orders ? Thieving gits !
Too bad it isn't China. These guys would be taken out into the carpark and bullet put through the back of their heads.
There is only one way the world will be rid of the vermin that is the bankster oligarch elite and their sycophant politicians and minions. Global nuclear war. The whole global system has to be destroyed to remove this systemic oligarch ebola.
It will never happen...so the only way out is to become one of them. Train your kids to be evil corrupt greedy dishonest sneaky and willing to lick, suck, fuck and swallow anybody who can help them get on, and to pretend zionism. Thats how you can become a Congressman, President, Prime Minister, Banker boss, Trader boss....
.
How can they collect their bonus from jail? Oh, wait ... there are no legal consequences for simply implementing banking empire policy.
Those criminals will not have to cover up their rigging activity. They simply can't support their mistress, Hamptons manse, and wife/kids/country club lifestyle on a bonus of 200% of their base.
Scotiabank files to raise up to 7 billion......gold manipulation fine?????
What is the penalty for parasitic living off other people's earnings thru entitlement program tit sucking ???