Seeking Alpha

BofA probed over trading practices

  • The Department of Justice and the Commodity Futures Trading Commission have investigated Bank of America (BAC) for possible improper trading by carrying out futures trades for its own purposes before executing large orders for clients.
  • The probes were disclosed in June, but have only just been reported. They appear to shed light on an FBI bulletin in which the agency said it suspects traders at two unnamed banks of conspiring to manipulate rates on major orders from Fannie Mae (FNMA) and Freddie Mac (FMCC), and of front running the government-sponsored enterprises (GSEs) in the markets for interest-rate swaps.
Comments (15)
  • This happens all the time but the govt only cares now because it happened to them.
    26 Jan, 02:20 AM Reply Like
  • And 2014 is am election yesr.
    26 Jan, 11:08 AM Reply Like
  • Front running the government is really bad. Just think what they do to your orders. Not that they care, if they have to pay money for fraud they will be just like Chase and pay without repercussion since everyone knows they are TBTF and if they ever got into trouble the money would flow right back to them as bailout money. It is time to admit the fact we have a centralized banking system where your tax money is their money with the exception the public can not prevent them from skimming billions off as salaries and bonuses while leaving the losses for the taxpayer to pay.

     

    I am not surprised they feel above the law, they are. And I am not surprised they gamble with the money rather than lend it out to small and medium sized businesses, they can't lose according to the directives of TBTF. And I'm not surprised they are corrupt, any system created with allowance for so much abuse is clearly crafted by corrupt people to start.

     

    We must change this before it corrupts the whole of America and corrodes our economy to that of Mexico or worse.
    26 Jan, 07:43 PM Reply Like
  • Time to move the shakedowns beyond JPM. As Jamie Dimon said in an interview last week, banks cannot afford long drawn out court cases....so they settle, even if they did nothing wrong....the cash strapped government knows that, and that banks are unpopular......so the government, like the con artist staging a slip on the floor of the local mcdonalds who just pays small lawsuits vs fighting them in court, our government will continue its shakedown....who will complain...the same people have spent the past five years telling us all the worlds problems were caused by the banks....and not the government.
    26 Jan, 06:42 AM Reply Like
  • I continue to be amazed at the sympathy for the mega-banks, only a handful of years after their bottomless greed helped bring down the global economy and put millions out of work. I'm guessing this is related more to knee-jerk anti-Obamaism than it is to a desire to stand up for those poor defenseless banks.

     

    long BAC
    26 Jan, 11:38 AM Reply Like
  • It was the government that sent the jobs out of the country by the millions through "free trade" agreements. The banks wrong doings were just exposed by the crisis and not the cause. We get to see what a piss pour job our government was doing paying attention to these banks at the time. Now our government runs around like they are shocked. Much like buffet says "you get to see who's swimming naked when the tide goes out" The tide does not go out because of one big company the tide goes out because of a structural defect in the economy. I currently see the banks as the scapegoats for these politicians. I would argue banks alone weren't big enough to cause this much destruction, only our government is big enough to cause this big a problem! They sure are stupid enough!
    27 Jan, 07:33 AM Reply Like
  • Careful with posting the truth. A similar post of mine was pulled by this site, And I was threatened with expulsion. Gets scarier every day!
    26 Jan, 12:34 PM Reply Like
  • So what's the point of Seeking Alpha bring this up now? Doesn't say what the conclusion was, was there wrong doing or just the investigation? The probes were disclosed in June which means they happened long before that and now they are news? I would be , and am wary of this kind of article, just someone trying to make a buck at the expense BAC.
    26 Jan, 12:41 PM Reply Like
  • The government lawyers don't want to trip over each other so they wait for a lull to get there turn to keep the pressure on the banks.
    27 Jan, 08:53 AM Reply Like
  • Please be reminded of AG Eric Holder's comment on too big to fail banks:

     

    "I am concerned that the size of some of these institutions becomes so large that it does become difficult for us to prosecute them when we are hit with indications that if you do prosecute, if you do bring a criminal charge, it will have a negative impact on the national economy, perhaps even the world economy," Holder said, according to The Hill. "And I think that is a function of the fact that some of these institutions have become too large."

     

    These banks do not fear prosecution. They pay fines because they have broken laws, not because the government is shaking them down.

     

    Where is Jon Corzine? Where is Stevie Cohen?
    26 Jan, 05:29 PM Reply Like
  • Why is that so Eric, do big banks have a monopoly? Aren't all banks doing the same thing?
    Mortgages, loans, selling savings certificates, checking, credit cards, etc. The larger banks have advantages in scope, they can reach farther then their smaller brethren and add more services. Not everyone needs the extra services of large banks, I don't, but if I traveled I would like to know I could find a branch of my bank if needed. While we're on the subject, do you have any objections to large corporations? Or large government payrolls?
    27 Jan, 10:33 AM Reply Like
  • Banks? Front running !!? NEVER!
    Happened all the time in my day. The chance of industry auditors randomly finding anything on the tapes was next to zero so the only investigations occurred when clients complained to the bank or regulator. Bankers are wealthy for good reason.
    26 Jan, 05:31 PM Reply Like
  • I would be more surprised if it didnt happen.

     

    How is this different than flash trading which is legal?
    26 Jan, 06:34 PM Reply Like
  • Hmm, government ripping-off banks? as opposed to the banks ripping of government (Elected by big business). i am sorry you are off base.
    26 Jan, 08:02 PM Reply Like
  • @ dictionshunary
    Jan 26 12:34 PM
    S&A did he same to me... kinda. I cannot post under comments anymore. They said I made a racist remark when they cannot read. SA is judge & jury.
    27 Jan, 12:59 AM Reply Like
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