Citi, Barclays Beat Sovereign Bond Manipulation Claims on Appeal
Mike Leonard, 19 July 2021
Citigroup Inc., Barclays Plc, and other top banks got a federal appeals court in Manhattan on Monday to uphold their win against antitrust claims over an alleged scheme to rig the multitrillion-dollar market for bonds backed by foreign governments and multinational institutions.
The U.S. Court of Appeals for the Second Circuit affirmed a pair of rulings by Judge Edgardo Ramos, who previously dismissed allegations that the banks manipulated the $9 trillion to $15 trillion market for “supranational, sub-sovereign, and agency” bonds, or SSA bonds.
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Citibank, JPMorgan, and other banking giants are facing a potential class action lawsuit over ripping off clients on currency trades, report says
Ethan Wu, 13 July 2021
Allegations of currency-trade manipulation are bubbling up into a potential class-action suit against several big banks, according to a report from the Financial Times.
Two high-powered legal teams are jostling to bring a collective action against the banks in London courts, pursuing a US-style class-action strategy that could lead to huge payouts. Under a 2015 UK law, class-action suits can be pursued if there are suspected violations of competition law in play, according to the FT. Continue reading “Article: Citibank, JPMorgan, and other banking giants are facing a potential class action lawsuit over ripping off clients on currency trades, report says”
New Mexico State Investment Council v Bank of America
Since 2005, the Wall Street banks that comprise the major dealers of credit default swaps (“CDS”) have been engaged in a conspiracy to manipulate the CDS “final auction price,” the benchmark price used to value all CDS contracts market-wide at settlement.
PDF (133 pages): New Mexico State Investment Council v Bank of America
The EU clears banks that ban bond transactions after the “declaration of honor”
Agnes Zang , 18 June 2021
The previous eight banks Banned After promising “integrity” and providing evidence of “remedial measures” after historical violations of antitrust rules, the bond sales of the EU’s 800 billion euro recovery fund have been approved to process future transactions.
Earlier this week, the European Union launched the largest lending boom in its history, issuing 20 billion euros of bonds, but due to previous scandals involving market manipulation, 10 banks were unable to participate in the transaction. The European Commission stated that eight of the lenders are now free to deal with future bond syndicates under the plan. Continue reading “Article: The EU clears banks that ban bond transactions after the “declaration of honor””
EU freezes bond sales of 10 banks for violating antitrust laws
Agnes Zang, 15 June 2021
As part of its 800 billion euro recovery fund, the European Union has excluded the 10 most hit banks in the debt market from lucrative bond sales because they have historically violated antitrust rules.
Brussels’ The biggest lending frenzy ever Beginning on Tuesday, a new 10-year bond will be sold to fund the NextGenerationEU program under a so-called syndicate and pay a group of banks to attract investor demand. Continue reading “Article: EU freezes bond sales of 10 banks for violating antitrust laws”
Barclays first bank to publish online scam refund details
Karl Flinders, 19 May 2021
Which? has called on banks to be more transparent about the proportion of victims of authorised push payment (APP) fraud they refund.
Barclays has signed up to a code to do so and has revealed that 74% of customers who suffered losses because of APP fraud in the first two months of this year have been repaid.
APP fraud, also known as bank transfer fraud, occurs when a consumer pays for something which turns out to be fake, and a criminal steals their money. Banks often reimburse customers through the Contingent Reimbursement Model, introduced in May 2019. This sets out when victims who are manipulated into making real-time payments to fraudsters are to be reimbursed and by whom, and banks usually take responsibility. Continue reading “Article: Barclays first bank to publish online scam refund details”
Banks fail in bid to share cost of refunding scam victims
BBC News, 30 April 2021
Negotiations between banks to create a permanent, central pot of money to refund scam victims have collapsed.
Seven banks and building societies had signed up to an interim, shared arrangement, but will now pay for refunds individually. The pot was being used to fund repayments when neither the bank nor customer were to blame for fraudsters stealing money.
An ongoing code means victims should not lose out on refunds. Continue reading “Article: Banks fail in bid to share cost of refunding scam victims”
NatWest to move HQ from Scotland in event of independence
Iain Withers, 29 April 2021
Britain’s NatWest would move its headquarters out of Scotland in the event of a vote in favour of independence, its CEO Alison Rose said, only days before parliamentary elections there.
State-backed NatWest (NWG.L), which until last year was called Royal Bank of Scotland, has been based for 294 years in the Scottish capital Edinburgh. “In the event that there was independence for Scotland our balance sheet would be too big for an independent Scottish economy. And so we would move our registered headquarters, in the event of independence, to London,” Rose told reporters. Continue reading “Article: NatWest to move HQ from Scotland in event of independence”
Pension Fund Drops Suit Against Tesla Over $1.8B Bond Offer
Rachel Stone, 16 April 2021
A pension fund voluntarily ended its proposed class action against Tesla and its multibillionaire founder, Elon Musk, which claimed the automaker and a group of big banks acting as underwriters misled investors on a $1.8 billion bond offering.
Inter-Local Pension Fund GCC/IBT has bowed out of its securities fraud suit in California federal court following a decision in the Ninth Circuit in March not to rehear a related case, according to a notice filed Thursday. Continue reading “Article: Pension Fund Drops Suit Against Tesla Over $1.8B Bond Offer”
Turkey fines firms over short selling irregularities
Reuters, 01 April 2021
Turkey fined 10 securities firms for up to 7.8 million lira ($1 million) in relation to irregularities in short-selling transactions, the country’s Capital Markets Board said in its weekly bulletin on Thursday.
Fines of various amounts were imposed on firms including Merrill Lynch International, JP Morgan Securities, Goldman Sachs International, Credit Suisse Securities Europe and Barclays Capital Securities, the statement said.
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Wall Street Giants Beat Treasury Auction Rigging MDL
Dean Seal, 30 March 2021
A New York federal judge ruled Wednesday that he has yet to see any direct evidence that Wall Street banks including Goldman Sachs and Credit Suisse conspired to manipulate the $14 trillion market for securities issued by the U.S. Treasury Department.
U.S. District Judge Paul G. Gardephe dismissed long-running multidistrict litigation accusing a group of banks that also included JPMorgan Chase and Morgan Stanley of rigging auctions for Treasury Department bonds and other securities, on top of reducing competition in a secondary market for those securities. Continue reading “Article: Wall Street Giants Beat Treasury Auction Rigging MDL”
A “Very Surprised” JPMorgan Calculates The Damage From The Archegos Collapse
TYLER DURDEN, 30 March 2021
Unlike the devastating London Whale debacle in 2012, which was all JPMorgan eventually drawn and quartered quite theatrically before Congress (and was a clear explanation of how banks used Fed reserves to manipulate markets, something most market participants had no idea was possible), this time JPMorgan was nowhere to be found in the aftermath of the historic margin call that destroyed hedge fund Archegos. Which is may explain why JPMorgan bank analyst Kian Abouhossein admits he is quite “puzzled” by the recent fallout from the Archegos implosion (or maybe JPM simply was not a Prime Broker of the notorious Tiger cub), which however does not prevent him from trying to calculate the capital at risk from the Archegos collapse. Continue reading “Article: A “Very Surprised” JPMorgan Calculates The Damage From The Archegos Collapse”
Credit Suisse Faces Additional Charges over FX Market Rigging
Arnab Shome, 22 March 2021
The European Commission has slapped an extra antitrust charge sheet against Credit Suisse for its involvement in the manipulation of foreign exchange (forex) markets, according to a Bloomberg report.
The Swiss lender confirmed the fresh charges in addition to the earlier charges, which were introduced in July 2018 for sharing crucial market-related information in chatrooms. However, the bank denied all allegations against it.
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“Credit Suisse continues to believe that it did not engage in any systemic conduct in the FX markets which violated the European Union’s competition rules, and is contesting the EC’s case,” the bank said in a statement.
The EU regulator’s original allegations named several major banks for their part in manipulating the currency benchmarks. Though most of the lenders settled with the regulator, Credit Suisse remains adamant pushing its innocence.
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Citi Must Face Former Trader’s Malicious-Prosecution Lawsuit
Bob Van Voris, Jenny Surane and Michael Leonard, Bloomberg News, 12 March 2021
(Bloomberg) — One of three British traders acquitted of using an online chatroom to fix prices in the foreign exchange market can go forward with a lawsuit claiming that Citigroup Inc. “fabricated” a baseless case against him, a judge ruled.
U.S. District Judge Victor Marrero on Thursday rejected the bank’s attempt to have the case dismissed. Former Citigroup trader Rohan Ramchandani sued in 2019 claiming damages of $112 million.
Read More: Citigroup Framed Me, Acquitted Forex Trader Claims in Suit
The ruling clears the way for Ramchandani, a former London-based trader, to move forward with the malicious-prosecution suit, which he brought in New York against a group of the bank’s affiliates after his acquittal.
“Mr. Ramchandani’s claims of malicious prosecution are without merit and we will contest them vigorously,” Danielle Romero-Apsilos, a spokeswoman for the bank, said in an emailed statement.
A Manhattan federal jury in October 2018 found Ramchandani and two other British traders working for other banks — a group dubbed “the Cartel” — not guilty of conspiring through online chatrooms to manipulate the $5.1-trillion-a-day foreign exchange market.
Citigroup, JPMorgan Chase & Co., Barclays Plc and Royal Bank of Scotland Group Plc pleaded guilty to currency manipulation in 2015 as part of a $5.8 billion settlement with the DOJ.
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Goldman Faces New Forex Rigging Suit From Currency Trader
Richard Crump, 12 March 2021
Goldman Sachs is being sued in London over allegations that its traders manipulated foreign exchange markets for profit, in the latest lawsuit filed by a British currency investment firm over trade front-running.
ECU Group alleges that traders at Goldman Sachs International misused its confidential information to make secret profits by trading ahead of foreign exchange transactions by the British company, an illegal tactic known as front-running, according to the High Court claim filed in November but only recently made public. Continue reading “Article: Goldman Faces New Forex Rigging Suit From Currency Trader”