Wednesday, April 1, 2015

“Until you start..putting some CEOs in jail, you’re not addressing the..issues.”

Jail CEOs
The new codes aren’t enough to contain misbehavior in the world’s largest financial market, according to James Rickards, chief global strategist at West Shore Funds and author of “Currency Wars: The Making of the Next Global Crisis.”
“This is a form of self regulation, but where’s the enforcement?” said Rickards. “It’s probably the best they can do. But in my view, all the codes and all the monitoring in the world will not substitute for a culture of compliance. Until you start actually arresting people, putting some CEOs in jail, you’re not addressing the cultural issues that are at the heart of this.”
The foreign-exchange market is one of the least regulated, opening the door to the risk of malpractice. Traders shared confidential information about their clients orders, and colluded to manipulate benchmark rates, according to the findings of regulators that were published in November.
The U.K. Financial Conduct Authority fined five banks 1.1 billion pounds ($1.6 billion), and said it would require about 30 more to overhaul their currency trading.

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