FBI investigating yet more market manipulation

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.

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Comments (4)
  • Jonathan Bluhm
    , contributor
    Comments (409) | Send Message
    So basically this is no news. It's only news if they can prosecute.
    14 Jan 2014, 06:16 AM Reply Like
  • philipmax
    , contributor
    Comments (428) | Send Message
    So many ways for insiders to skim. It's a wonderment that any small investor makes a buck in our system.
    14 Jan 2014, 07:53 AM Reply Like
  • hicupper
    , contributor
    Comment (1) | Send Message
    Heads up people, here's a legitimate way to skim a small percentage!
    15 Jan 2014, 03:43 PM Reply Like
  • jstratt
    , contributor
    Comments (4009) | Send Message
    This is a sham political article.


    The FBI cant prosecute fraudulent activity which was specifically approved by congress.
    1 Apr 2014, 10:01 PM Reply Like
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