- The FBI suspects traders at two unnamed banks of conspiring to manipulate rates on major orders from Fannie Mae (FNMA) and Freddie Mac (FMCC) or of front running the government-sponsored enterprises (GSE) in the markets for interest-rate swaps.
- Front running is using advanced knowledge of an order to make a transaction first.
- Senior management at the banks "planned and encouraged this behavior because it led to higher revenue for their respective parent banks," an FBI bulletin says.
- However, the agency isn't confident it can prosecute, because the transactions involved appear to be legitimate.
FBI investigating yet more market manipulation
From other sites
Federal National Mortgage Assctn Fnni Me : News Release - Fannie Mae Connecticut Avenue Securities ...at 4-traders.com (Mar 24, 2015)
Federal National Mortgage Assctn Fnni Me : News Release - A Soft Start to 2015, but Acceleration ...at 4-traders.com (Mar 23, 2015)
at 4-traders.com (Mar 23, 2015)
at Zacks.com (Feb 23, 2015)
at CNBC.com (Jan 26, 2015)
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