New York sues Barclays for fraud over dark pool

"The facts alleged in our complaint show that Barclays (BCS) demonstrated a disturbing disregard for its investors in a systematic pattern of fraud and deceit,” says NY AG Eric Schneiderman. "“Barclays grew its dark pool by telling investors they were diving into safe waters. According to the lawsuit, Barclays’ dark pool was full of predators – there at Barclays’ invitation.”

Contrary to promises made by Barclays to clients, according to the complaint, Barclays never stopped any trader - no matter how predatory - from participating in its dark pool, did not regularly update the ratings of HFT firms monitored by Liquidity Profiling, and "overrode" certain Liquidity Profiling ratings by assigning safe ratings to traders otherwise known to be toxic.

Previously: More on NY's suit against Barclays

Previously: Report: Dark pool case to be filed against Barclays today

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Comments (7)
  • SoCalNative+(RIP)
    , contributor
    Comments (651) | Send Message
    "According to the lawsuit, Barclays’ dark pool was full of predators"


    WHAT!? I heard it was full of meanies too.
    25 Jun 2014, 07:05 PM Reply Like
  • Deja Vu
    , contributor
    Comments (1805) | Send Message
    Barclays will pay a nominally impressive fine of hundreds of millions or a couple of billions, admit no wrong doing and walk away.


    That would be about 2 cents on the dollar of profits from frontrunning clients.


    When will we call the banks for what they are - organized crime?
    25 Jun 2014, 07:12 PM Reply Like
  • minecanary
    , contributor
    Comments (1241) | Send Message
    Now Dej, You're tarring the good 5% of bankers with the same feathers as the 95% that commit the crimes.
    25 Jun 2014, 09:04 PM Reply Like
  • MisterJ
    , contributor
    Comments (1173) | Send Message
    Whatever happened to integrity in the business world? Whatever happened to oversight and timely regulations?
    25 Jun 2014, 09:27 PM Reply Like
  • Trader's Profit Compass
    , contributor
    Comments (2071) | Send Message
    Read "Reminiscences of a Stock Operator" ......this crap has been going on since the market was created. Scams, scoundrels, and Suckers are part and parcel with the market. Start sending folks to jail....that slows them down more than fines. Fines are simply a toll booth for these guys.
    26 Jun 2014, 04:54 AM Reply Like
  • Trader's Profit Compass
    , contributor
    Comments (2071) | Send Message
    Vampire Squids roam freely in dark waters which is their natural habitat. They do not like bright lights which make it difficult for them to feed.
    26 Jun 2014, 04:50 AM Reply Like
  • june1234
    , contributor
    Comments (4357) | Send Message
    JPM's Dimon got a 50% raise after he negotiated his banks $20B fine, cost of doing business, next.
    26 Jun 2014, 07:17 AM Reply Like
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