Seeking Alpha

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.
Comments (4)
  • Jonathan Bluhm
    , contributor
    Comments (401) | 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 (304) | 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 (2786) | 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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