By Derek Hunter
Several large banks agreed
to a $4.3 billion joint civil settlement with U.S., U.K. and Swiss regulators
on Wednesday over currency exchange manipulation by its traders. Similar to the
historic LIBOR settlements over the last few years, the six banks settled charges that they took
steps designed to boost their profits by manipulating one of the world’s
largest and most interconnected markets, sometimes at the expense of their
clients. In secret chat rooms, traders from multiple banks would disclose confidential
information to allow them to manipulate foreign currency prices and make a
profit for themselves.
BloombergView discusses what these traders did wrong, how it compares to the LIBOR
manipulation, and why this will not be the last we hear about these foreign
currency manipulators.
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