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Are The Markets Rigged? | Zero Hedge

Are The Markets Rigged? | Zero Hedge.

Despite being found guilty of and fined for manipulations of every other market in the world (from FX to rates to energy), investors small and large continue to play the markets on the basis that they are fair and balanced. Aside from high-profile insider trades; day after day, the oddly high correlations, the obvious spikes, blips, and front-running are ignored… until now. In this brief documentary,CBC asks the critical question “are the world’s stock markets rigged?” Amanda Lang concludes “there’s a sense among the general public that nobody seems to be maintaining the integrity of the system.” as she highlights case after case “as though everything is rigged!” Conspiracy theory evolves once again into conspiracy fact as the system that’s supposed to benefit many, but actually enriches a few.

 

“Historically, the system works because people have confidence in the rules and believe they are treated the same as anybody else.

 

But it’s getting harder and harder to ignore the stories of powerful people cheating the system for their own gain. As the bad apples add up, it gets harder and harder to ignore a troubling realization — “everything is rigged.””

 

 

 

As we’ve noted before:

Courtesy of the revelations over the past year, one thing has been settled: the statement “Wall Street Manipulated Everything” is no longer in the conspiracy theorist’s arsenal: it is now part of the factually accepted vernacular. And to summarize just how, who and where this manipulation takes places is the following series of charts from Bloomberg demonstrating Wall Street at its best – breaking the rules and making a killing.

Foreign Exchanges

Regulators are looking into whether currency traders have conspired through instant messages to manipulate foreign exchange rates. The currency rates are used to calculate the value of stock and bond indexes.

 

Energy Trading

Banks have been accused of manipulating energy markets in California and other states.

 

Libor

Since early 2008 banks have been caught up in investigations and litigation over alleged manipulations of Libor.

 

Mortgages

Banks have been accused of improper foreclosure practices, selling bonds backed by shoddy mortgages, and misleading investors about the quality of the loans.

 

How Wall Street Manipulates Everything: The Infographics | Zero Hedge

How Wall Street Manipulates Everything: The Infographics | Zero Hedge.

Courtesy of the revelations over the past year, one thing has been settled: the statement “Wall Street Manipulated Everything” is no longer in the conspiracy theorist’s arsenal: it is now part of the factually accepted vernacular. And to summarize just how, who and where this manipulation takes places is the following series of charts from Bloombergdemonstrating Wall Street at its best – breaking the rules and making a killing.

Foreign Exchanges

Regulators are looking into whether currency traders have conspired through instant messages to manipulate foreign exchange rates. The currency rates are used to calculate the value of stock and bond indexes.

Energy Trading

Banks have been accused of manipulating energy markets in California and other states.

Libor

Since early 2008 banks have been caught up in investigations and litigation over alleged manipulations of Libor.

Mortgages

Banks have been accused of improper foreclosure practices, selling bonds backed by shoddy mortgages, and misleading investors about the quality of the loans.

* * *

And in the latest news on manipulation, according to the FT, “The UK’s financial regulator is probing the use of private accounts by foreign exchange traders amid allegations they traded their own money ahead of clients orders, in a serious twist in the global probe into possible currency market manipulation. The Financial Conduct Authority has asked several banks to investigate whether traders used undeclared personal accounts, two people close to the situation said.”

Investors and foreign exchange traders have been speculating for a while that less scrupulous colleagues might have used private accounts at spread betting firms to gain advantages from their inside knowledge.

Hiding personal accounts is viewed as a clear breach of the rules. “If someone was [using a PA] to sell or buy ahead of the fix, I have no sympathy for him,” said one trader.

Personal accounts – or “PAs”, as traders call them – generally have to be declared to the bank and usually to a trader’s boss. Each individual trade then also has to be declared – often through an automatic email that is sent out when a trade is made.

Regulators are focusing their investigations on possible manipulation of a crucial benchmark, the 4pm WM/Reuters fix, in an affair that is echoing the Libor benchmark rate-rigging scandal.

Guess what they are going to find…

Average:

5

 

U.S. Justice Department Opens Criminal Probe Into Currency Market Manipulation | Washington’s Blog

U.S. Justice Department Opens Criminal Probe Into Currency Market Manipulation | Washington’s Blog. (FULL ARTICLE)

Currency Markets Are Rigged

Currency markets are massively rigged.

Bloomberg reports today:

The U.S. Justice Department has opened a criminal investigation of possible manipulation of the $5.3 trillion-a-day foreign exchange market, a person familiar with the matter said.

The Federal Bureau of Investigation, which is also looking into alleged rigging of interest rates associated with the London interbank offered rate, or Libor, is in the early stages of its currency market probe, said the person, who asked not to be identified because the inquiry is confidential.

***

Swiss regulators last week said they were “coordinating closely with authorities in other countries as multiple banks around the world are potentially implicated.”

The U.S. investigation comes as the U.K. Financial Conduct Authority said in June it was reviewing potential manipulation of exchange rates….

Related articles

 

Singapore Censures 20 Banks for Attempts to Rig Benchmark Rates – Bloomberg

Singapore Censures 20 Banks for Attempts to Rig Benchmark Rates – Bloomberg.

Banks Rig $4.7 Trillion A Day Currency Markets To Profit Off Clients | Zero Hedge

Banks Rig $4.7 Trillion A Day Currency Markets To Profit Off Clients | Zero Hedge.

 

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