The Cartel: The FOREX scandal (Involving nearly every big bank) unfolding in England right now

By Against Crony Capitalism


The Cartel: The FOREX scandal (Involving nearly every big bank) unfolding in England right now



Want to know which way the dollar or the euro is going to move? Well, if you were a member of the “Cartel” chat group (until recently) you knew before almost everyone else. Many of the giant banks we all know and love had members.

Trading in these markets is no game and outsiders are at a disadvantage, I don’t care what the FOREX trading companies tell you.

When the Bank of England itself is in on the game, and it looks like it was a part of this one, one has no chance. One can get lucky. One can catch an updraft or downdraft but that’s it.

Again, it’s a club. And you are not in it.

From Zerohedge
All of the above would be, if proven, criminal but in line with expectations: after all when given a carte blanche to do anything they want, humans will do just that, even if it means trample every regulation known to man. In fact, the bigger one’s balance sheet, the greater one’s percevied (and realized) leeway of sneaking between the legal cracks, facilitated by the number of politicians and regulators that have been coopted and outright purchased courtesy of said big balance sheet.
However, the true punchline is this: “[Usher] joined JPMorgan as head of spot foreign exchange in 2010,where he became a member of the now-defunct Bank of England’s Chief Dealers Sub Group, a collection of about a dozen currency traders and central bank officials who met at restaurants and bank offices to discuss industry developments.”
In other words, all of this rigging, all of the FX manipulation, all of the criminal abuse of naive, innocent market participants took place with the Bank of England’s own seal of approval. Which, of course, is why the BofE itself had to scapegoat its own sacrificial lamb to avoid any further connection to this criminal cartel – something it did in early November when it fired its Chief FX dealer, Martin Mallett, who on November 12 “was dismissed by the Bank of England yesterday for “serious misconduct relating to failure to adhere to the Bank’s internal policies,” according to a statement by the central bank today.”
And just like that all loose ends have been cut off, although if we were Mr. Mallett, we would certainly keep away from loose nail guns, hot tubs or airplanes for the next several months.
In the meantime, after the mandatory pause of 3-6 months, all rigging, all manipulation, and all criminal abuse with blessing from the central bank itself will quietly return, because until the great (and as increasingly more predict, very violent) reset finally comes, nothing can possibly change in a system as corrupt as this one.

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Reprinted with permission from Against Crony Capitalism.