The Next LIBOR? Financial Regulators Investigate Rigging of Currency Markets

By Joe Vladeck

The dust has yet to fully settle in the wake of the LIBOR-fixing brouhaha, which has implicated virtually all of the world's largest financial institutions.  Yet financial regulators in the United Kingdom, Switzerland, and the United States are investigating yet another potential scandal: attempts to rig the $5 trillion international currency market.  The U.K Financial Conduct Authority, the U.S. Federal Bureau of Investigation, and the Swiss market regulator have all requested documents from institutions such as JPMorgan Chase and RBS that may show the banks colluded to set the daily currency "fixes" used to value portfolios of currency holdings. 

The Wall Street Journal has the details, and suggests that this sort of manipulation has long been a concern of investors.

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