Thursday, 7 November 2013

The market rigging goes on - this time it's oil and interest rates yet again

You have to wonder if there's any financial or commodities market in the world that isn't rigged.
From the news overnight:

Bloomberg - Brent Crude Traders Claim Proof BFOE Boys Rigged Market
Four longtime traders in the global oil market claim in a lawsuit that the prices for buying and selling crude are fixed -- and that they can prove it. Some of the world’s biggest oil companies including BP Plc (BP/), Statoil ASA (STL), and Royal Dutch Shell Plc conspired with Morgan Stanley and energy traders including Vitol Group to manipulate the closely watched spot prices for Brent crude oil for more than a decade, they allege. The North Sea benchmark is used to price more than half the world’s crude and helps determine where costs are headed for fuels including gasoline and heating oil.
Reuters - EU to fine banks billions of euros over rate rigging
A number of finance firms, including Royal Bank of Scotland and Rabobank face billions of euros in fines next month from European Union regulators for colluding on global benchmark interest rates, reinforcing Brussels' hard line on the sector after the financial crisis.
EU antitrust chief Joaquin Almunia is set to unveil a record fine of at least 1.5 billion euros ($2.03 billion) on six banks, including Barclays and RBS, for rigging the yen Libor interest rate benchmark, a banking source said on Wednesday.
In addition to the yen Libor fines, likely to be the biggest so far from Brussels, Almunia will also penalize another group of banks for operating as a cartel in a separate case involving the rigging of the Euribor benchmark interest rate, reported by Reuters on Tuesday.
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