Other banks may soon follow suit and here’s why: The Justice Department is investigating alleged collusion of currency markets by a group of traders from several banks, including Citigroup (C), Royal Bank of Scotland (RBS), UBS (UBS) and Deutsche Bank (DB). The bankers communicated via instant messaging and at least one trader is cooperating with authorities, The New York Times reports.
The fact the group called themselves “The Cartel” isn’t likely to help them in the court of public opinion, much less with the feds.
“The manipulation we’ve seen so far may just be the tip of the iceberg,” U.S. Attorney General Eric Holder told The Times. “We’ve recognized that this is potentially an extremely consequential investigation.”Read More »from Wall Street’s Culture of Corruption: Forex Markets Manipulated Too, NYT Reports