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Morgan Stanley fires traders who are under investigation for mismarking emerging market currency trades that cost MS $100M+ #ButNothingsHappening https://twitter.com/stespezzati/status/1200120843566829568
Currency trades are sometimes used as a profit making & money laundering tool. You make a bad trade with someone to eat the losses while they pocket the profit. Were they hiding from their bosses that they were betting to lose on the trades?
The traders are accused of 'mismarking' trades, essentially putting them in the system with a false claim as to their value.
Apparently they are still blaming a lack of controls over the actions of their employees for all the misconduct.
Maybe that is a feature not a bug!
Maybe that is a feature not a bug!
The Bank of England fined Citigroup $57M this week for inaccurate reporting to regulators.
Meanwhile French bank Natixis was forced to suspend a senior trader in NYC for how some of his transactions were recorded. They're facing questions about their "risk management" which often means why did you 'lend' money to a shell company that wasn't going to pay it back!
