US, UK, and Swiss regulators have slapped fines against Chase, Citi, Bank of America, UBS, RBS, and HSBC for turning forex trading into a fraud factory for their own benefit. The fines total US$ 4.3 billion, trumpeted as the heaviest penalties in history. The traders involved have been shown the door, along with one of the forex chairs at the Bank of England. And the fact that this crap is being touted as some sort of regulatory triumph shows just how messed up the system is.
First, this scam went on for years, the players were brazenly communicating their activities with each other, and no one did a thing. Second, the forex market trades over US$ 5 trillion per day. Even if these banks took only 0.1% commissions (HA!) and held just 10% of the market (They're well north of that.), the fines would amount to less than two weeks of commissions. Third, once again only the little people have been punished while the players who make the policies that created these crimes remain in place. It would be as if Donald Segretti took all the blame for Watergate and everyone else got to stay in the White House.
The game is rigged. Makes you want to run right out and put your retirement in the market, doesn't it.
Labels: Bank of America, Chase, Citigroup, HSBC, JP Morgan Chase, RBS, UBS