Banks admission of FX rigging and fines

sub7bign

Hi , Having been found guilty of rigging FX , the major banks ,( apart from Barclays who are still in negotiation over the size of the fine ), have been fined. All well and good the treasury is getting a load of cash . What about the customers who ended up with rates which were not what they should have been and were unfairly treated . Wouldn't this be similar to PPI and the banks be expected to address the error made. Would you think the FCA would make a ruling like they did with PPI???. Or will it come down to individual customers taking on ther banks

SpiceIsland

I think this will be big thing in the New Year. Need somebody to issue Court documents and get a good result. The Banks will then cough up

Nasqueron

The Forex scandal is about manipulating values of currency on the world trade markets but the changes were fractions of a % - as an example, HSBC did one fixed trade where the GBP/USD rate dropped from 1.6044 to 1.6009 - a tiny amount (and it would almost certainly not have affected the rate a consumer buying holiday money would have got anyway).

If you take that HSBC example, if you were buying £1000 worth of USD you would have got either $1604.4 or 1600.9 - 3.5 dollars difference - you get a bigger change day to day given the currency fluctuations .

Seriously move on and stop grubbing for money

tgtk

Nasqueron, what about the 153% the dollar lost to the swiss franc in the preceeding years, these were not mere 100's of a cent, they were massive moves and nothing was mentioned. So I disagree, the moves definitely affected EVERYONE.

By comparison, when the rouble (not the reserve currency like the dollar is) recently dropped by 20%, all hell broke lose. Seems to be ok to manipulate if the manipulators are banks running government and regulators.

tgtk

@sub7
you're quite right and the EU commission have made a new legislation that helps people make claims, or you could join me in a class action with 1,000's of other people.
Unless public rack back losses, these bankers will carry on doing this and paying peanut fines.
Public need to work together and put banks in place and their traders in prison for theft.
By the way, the small % moves mentioned in the press are not what caused the crisis, it's the big ones that went on being ignored. The 4pm is merely a distraction, a scapegoat to what banks don't want regulators to highlight because banks would be instantly bankrupt & closed.

Nasqueron

tgtk wrote: »

Nasqueron, what about the 153% the dollar lost to the swiss franc in the preceeding years, these were not mere 100's of a cent, they were massive moves and nothing was mentioned. So I disagree, the moves definitely affected EVERYONE.

By comparison, when the rouble (not the reserve currency like the dollar is) recently dropped by 20%, all hell broke lose. Seems to be ok to manipulate if the manipulators are banks running government and regulators.

Do you have any proof the FX scandal, which I detailed above which was all about buying a currency at one rate then fixing the market to change and selling to make a profit was somehow causing such a massive swing? The reason I ask is that the Forex scandel that the banks were fined for were tiny % changes not 150% drops so it's completely different, you are talking about something else - if a customer lost out it was to the tune of £1-2 and the rates you get day to day swing more than that.

theEnd

The large currency movements were caused by central banks legally manipulating the markets. Low/zero interest rates, QE (printing).

The investment bank illegal manipulations were tiny, tiny, temporary blips which the normal consumer would not have been affected by.

There would be a counterparty, who could claim, but most likely another bank.

Similar with LIBOR.

tgtk

Nasqueron wrote: »

Do you have any proof the FX scandal, which I detailed above which was all about buying a currency at one rate then fixing the market to change and selling to make a profit was somehow causing such a massive swing? The reason I ask is that the Forex scandel that the banks were fined for were tiny % changes not 150% drops so it's completely different, you are talking about something else - if a customer lost out it was to the tune of £1-2 and the rates you get day to day swing more than that.

No matter what, it's still manipulation, large or small

Nasqueron

tgtk wrote: »

No matter what, it's still manipulation, large or small

I didn't say it wasn't - they did it, got caught and were fined for it.

What I am saying is you will not get any compensation for it - you are talking about it being the same as PPI miss-selling which cost some people high 5 figure sums but it isn't, it's a commercial rule breaking situation, not consumer. As I pointed out, a single example would have cost the consumer about $3.5 (from an order of £1000 worth of US currency) if they had been buying in the hour when the rates were being manipulated, it's peanuts - you could lose / gain more dollars from the general market fluctuations - you are not going to get compensation for this, just put it to bed.

The idea of taking a bank's commercial arm to court to reclaim something you probably won't be able to prove anyway to get back £2 is so laughable I can't believe it has even been suggested

safestored4

This subject has been considered at length in previous posts. As Nasqueron says the amounts involved are miniscule and as many people profited from the manipulation as lost from it. For all we know the OP is one of these.