Article Image

IPFS News Link • Federal Reserve

Fed Investigated FX Rigging Months Before Manipulation Was Exposed, Did Nothing

• http://www.zerohedge.com, by Tyler Durden
The Federal Reserve examined a key foreign-exchange benchmark months before global regulators sounded the alarm about potential manipulation, but officials took no public action.
 
Today, that benchmark—the so-called WM/Reuters fix—is at the center of a burgeoning investigation into whether bank traders and others colluded to manipulate the $5.3-trillion-a-day currencies market. Roughly two dozen bank traders have been fired or suspended. Banks are bracing for potentially huge civil and criminal penalties.
 
Until earlier this year, the Fed has been absent from the long list of authorities publicly probing the situation.