More firms added to lawsuit over FX rigging

Pointing Finger

BNP Paribas, Bank of America and three other banks were added to a lawsuit by investors now accusing a dozen institutions of rigging prices in the $5tril-a-day foreign-exchange currency market.

Bloomberg reports that the investors, which include hedge funds and public pension funds, claim the banks’ top currency traders used closed-network chat rooms with names such as 'The Cartel', 'The Bandits’ Club' and 'The Mafia' to exchange confidential client information and manipulate the rates used for determining foreign exchange prices.

Bloomberg News reported last year that traders at some banks said they shared information about their positions through instant messages, executed their own trades before client orders and sought to manipulate the benchmark WM/Reuters rates. Bloomberg News also reported that recurring spikes in trading around the periods in which the rates are calculated suggested that dealers may have been trying to influence the benchmarks.

To access the complete Bloomberg article hit the link below:

BNP Paribas, BofA Added to Forex-Rigging Suit in New York

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