Citigroup Inc (NYSE:C) Looks To Go The JPM Way

849

Dallas, Texas 12/23/2013 (FINANCIALSTRENDS) – Citigroup Inc (NYSE:C) and a host of other big-name banks in the foreign exchange trading sector were in for more disheartening news. As the current probe, initiated by regulatory bodies in Europe, Asia pacific, US – have found evidence of these big bank’s forex traders engaged in light ‘trading’ banter to ensure every bank had a go at maximizing its profits.

Though the fraudulent practices hit the headlines months ago, it is only now that the investigating teams have found hard-evidence that traders did exchange notes on orders placed with them to ensure that each could make a profit. Citigroup Inc (NYSE:C) traders too were part of such cartels. Nearly all of them created handles called as ‘The bandits Club’ or ‘The cartel’ to engage in exchange of vital client orders.

Most foreign exchange rates are fixed in a window period at 4pm and the zero hour it offers is the period in which banks were known to leverage orders in-house to maximize profits.

However, news that these banks now exchanged their confidential orders to ensure they made substantial profits, by manipulating the sequence in which these were processed is what has set countries and businesses across the world upset. Traders from high-profile, reputed banks such as, UBS, JP Morgan, Barclays and Citigroup were primarily involved! It is a non-issue that these banks have now dismissed the traders involved.

Even as the global financial crisis continues to backlash and nearly every emerging market saw a recent slide in exchange rates, such ‘manipulation’ by banks of repute especially in Europe and Unites States has definitely hurt business sentiment and will get its pound of flesh soon!

Citigroup Inc. (NYSE:C) is now already an accused in a law suit filed by a conglomerate of South Korean companies, alleging foreign exchange rate fraud.

Subscribe to get your free report!

* indicates required
*Past performance is not a predictor of future results. All investing involves risk of loss and individual investments may vary. The examples provided may not be representative of typical results. Your capital is at risk when you invest – you can lose some or all of your money. Never risk more than you can afford to lose.By submitting your information you agree to the terms of our Privacy Policy • Cancel Newsletter Any Time.This is a FREE service from Finacials Trend. Signing up for our FREE daily e-letter also entitles you to receive this report. We will NOT share your email address with anyone.