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UBS Suspends Six Forex Traders
News reports reveal a widening Forex investigation as UBS suspends six Forex traders. We wrote previously about an international investigation of Forex markets by the U.S. Department of Justice, the UK Financial Conduct Authority, and authorities in the European Union. As always our concern for the Forex trader is beating the Forex conspiracyas the wealthy and well-connected manipulate currency markets.
News Update as UBS Suspends Six Forex Traders
According to the Forex news, UBS suspended two traders in Zurich, three in New York, and one in Singapore. This is a result of the ongoing Forex investigation and a direct result of the bank’s own internal investigation in rigging of currency benchmarks. To date there have been thirty Forex traders suspended from eleven banks. Allegations are that traders used chat rooms to share info and rig Forex benchmarks allowing them to trade more profitably while others incurred losses.
Another Libor or More
As UBS suspends six Forex traders at once investigators are wondering if this will turn into another LIBOR scandal. The LIBOR scandal was when investigators found that banks were rigging inter bank loan rates. The end result of the LIBOR scandal as that banks had to pay billions in fines to regulators, fire dozens of traders and are still are facing law suits that could run into the billions of dollars. Now we hear that silver and gold trading may also have been subject to the same sort of problems as the Forex Conspiracy with traders fixing benchmarks.