Metal and currency rigging worse than Libor

Gold Dollar

Germany’s top financial regulator said possible manipulation of currency rates and prices for precious metals is worse than the Libor-rigging scandal, which has already led to fines of about $6bn.

Bloomberg reports that the allegations about the currency and precious metals markets are 'particularly serious, because such reference values are based - unlike Libor and Euribor - typically on transactions in liquid markets and not on estimates of the banks,Elke Koenig, the president of Bafin, said in a speech in Frankfurt yesterday.

Koenig is the first global finance regulator to comment publicly on the investigations as probes into the London interbank offered rate, or Libor, expand into other benchmarks.

Joaquin Almunia, the European Union’s antitrust chief, said this week that its preliminary probe into possible foreign-exchange manipulation covers similar practices as in the regulator’s probe into Libor-rigging.

To access the complete Bloomberg article hit the link below:

Metals, Currency Rigging Worse Than Libor, Bafin's Koenig Says

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