New forex lawsuit parses data to make case

There have been a number of suits against the global banks over claims of forex manipulation, but this latest by the City of Philadelphia Board of Pensions and Retirement is the first to include research highlighting unusual movements in major currencies.

Using data compiled by Fideres, the plaintiffs analyzed daily trading right around the 4 PM fix of currency prices ... curiously, anomalous price movements became rarer and less pronounced after the initial reports of rigging surfaced last summer.

Morgan Stanley has spent some time looking at euro/dollar spikes at 4 PM and also concluded they were unrelated to economic events. Instead of collusion though, Morgan pins the blame on computerized trading programs.

The seven banks sued by Philadelphia which is seeking damages as high as $10B: Barclays (BCS), Citigroup (C), Deutsche Bank (DB), HSBC, JPMorgan (JPM), RBS, and UBS.

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Comments (6)
  • wyostocks
    , contributor
    Comments (9115) | Send Message
    "Morgan pins the blame on computerized trading programs."


    Hello. And just who owns the computers that do the trading and who benefits from those trades? Must be someone on another planet cause it couldn't possibly be MS and the other banks.


    And JPM is named in yet another scandal. Amazing.
    12 Feb 2014, 03:17 PM Reply Like
  • gmmpa
    , contributor
    Comments (679) | Send Message
    What... You mean to say that computerized manipulation is illegal? Who knew! Put those computers responsible behind bars and throw away the key! Those damn computers will be the death of us all.
    12 Feb 2014, 08:37 PM Reply Like
  • skipmac
    , contributor
    Comments (55) | Send Message
    There may be another one coming because of the awful service that their Fiduciary Tax Dept is giving to their trust clients. It isn't an operation where you just push buttons and hope the form 1041 comes out OK. Bancone never had the expertise to handle JPM and Chase fiduciary tax reporting, and those are the people in charge, not JPM or Chase employees.
    12 Feb 2014, 09:06 PM Reply Like
  • 11093511
    , contributor
    Comments (11) | Send Message
    I am sick and tired of these slimebag bureaucrats suing every bank they can think of because THEY got greedy and made huge mistakes with their investments and now need some other entity to take the blame. They are only attempting to rob all of the investors in these banks including millions of people with money in 401(k)'s.
    13 Feb 2014, 01:00 AM Reply Like
  • gmmpa
    , contributor
    Comments (679) | Send Message
    Geschoch... I share your pain: The Dodd Frank bill, Sarbanes Oxley after Enron, Fannie Mae and Freddie Mac and the fair housing act, Glass Steagall act, The Gold Reserve Act, the Nixon Executive Order 11615. History of government interference and mismanagement of the banking system and the unintended consequences that followed is the price we pay.
    13 Feb 2014, 09:24 AM Reply Like
  • outofhere
    , contributor
    Comments (3694) | Send Message
    geschoch and gmmpa


    My main problem is with Main St. They vote the idiots in. The idiots pass Dodd Frank as an example they tell Main St. that they solved to big too fail. In a few years it will become perfectly clear to Main St. they were screwed.
    1] the big banks will take market share from the regionals because only the big banks can afford to follow the Dodd Frank rules, and are now TOO TOO big to fail.
    2] the new mortgage rules will kill any chance for the lower middle class to own a home.
    3] Most of Main St will blame the banks for unintended consequences, that was caused by their voting in the idiots in the first place.
    4] Mayor Koch of NYC once said the people must be punished when they vote in the wrong guy. I guess that's what happening now.
    13 Feb 2014, 10:16 AM Reply Like
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