Banks ban traders from chat rooms

|By:, SA News Editor

“The bank clamped down on this big time. I think we were even going slightly overboard on this,” says one senior banker after a number of lenders including Barclays (BCS), Citigroup (C), and RBS banned the use of most chat rooms amid probes into rate manipulation.

Most of the rooms in question are those where traders from competing banks participate - it's these on paper conversations where investigators are likely to draw the fuel for their anti-competitive practice charges. JPMorgan (JPM) is reportedly examining whether these conversations should instead be carried out over the phone.

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