FBI Investigates Banks After Whistleblower Exposes Traders Front …
It would appear that the government, via its mortgage-financing subs Fannie Mae and Freddie Mac, is providing yet another $50 to $100 million fillip to banks – but this time at the expense of their ignorance. As Reuters reports, the FBI is investigating “unsophisticated tradecraft,” such as hand signals and special telephone ring tones, that some traders are conspiring to rig rates on large orders submitted by the GSEs – front running them in the interest rate swaps market. Of course, no one is surprised at yet another manipulation or malfeasance but the ‘high-level-employee’ whistleblower’s exposure is perhaps not surprising since the size of ‘hedging’ orders from the mortgage-managers provides an incentive for front-running ahead of the trades – “GSEs frequently submit large interest-…
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It would appear that the government, via its mortgage-financing subs Fannie Mae and Freddie Mac, is providing yet another $50 to $100 million fillip to banks – but this time at the expense of their ignorance. As Reuters reports …
For more info: FBI Investigates Banks After Whistleblower Exposes Traders Front …
FBI Investigates Banks After Whistleblower Exposes Traders Front …
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