The Cartel Forex Scandal involved traders from several banks and is a major issue in the global financial markets. They have been accused of using online chat rooms to manipulate the prices of currency pairs. After investigators poured through thousands of records, they found that over 200 different chat rooms were involved in this alleged rate-rigging scheme. The large banks have been shut down, and they’ve been ordered to pay billions of dollars in damages.
In an attempt to stem the damage, the European Commission has announced a $2.5 billion settlement. The fine is the result of an investigation that found the banks were operating two separate cartels in the foreign exchange market. These cartels violated EU competition laws, and the European Commission has fined the banks. The three banks involved in the scandal were Barclays, Citigroup, JP Morgan, and RBS.
The EU has ruled that the financial firms operated two separate cartels in the foreign exchange market. The firms were fined for their collusion, and the settlement will not affect the individual banks. However, the European Commission’s decision does raise important questions about the future of the financial industry and the integrity of EU competition law. As a result of the Cartel Forex Scandal, these firms have been forced to compensate customers, which is a shame for the entire industry.
The Cartel Forex Scandal highlights the importance of monitoring the communications of financial firms. Financial firms should employ sophisticated tools to monitor employees’ work-related communications. The right monitoring solution can help firms identify potential misuse of their digital communication products, and prevent scandals from occurring in the future. The Cartel Forex Skandal – Why It’s Important to Monitor Your FIs’ Online Chats and Messaging Services
The European Commission recently concluded its investigation into another foreign exchange scheme. The Commission fined the banks a total of EUR371 million for colluding and stealing. The scandal has undermined the integrity of the financial sector and consumer protection. It also led to the closure of several FIs. Despite the seriousness of the scandal, many financial firms have taken the steps to monitor their employees’ communications. A proper monitoring solution can identify inappropriate behavior on the Internet and prevent a potential scam.
The European Commission found that a number of banks operated two separate cartels in the foreign exchange market. They had a mutual interest in fixing the exchange rates and thereby sabotaged the European economy. They violated EU competition law. The fines were large enough to force the banks to pay their customers more. The penalties were very high and the companies were not required to pay the fines. In addition to this, the EU is preventing the banks from violating antitrust laws.
The investigation into the Cartel Forex Scandal has been a major headache for the industry. The European Commission has now found that the five banks collided and were incensible in the foreign exchange spot trading market. All five banks have admitted to wrongdoing and are now paying a hefty fine. While the fines are not huge, the damage done to investor confidence may be more damaging.
Check the infographic below about the Cartel FOREX scandal for more information:
