Global regulators have fined five banking giants $4.2 billion for attempting to manipulate foreign exchange markets. British banks HSBC and RBS (Royal Bank of Scotland), US banks Citigroup and JPMorgan Chase, and Swiss lender UBS, have all been fined by one or more of the following regulators: Britain’s Financial Conduct Authority, the US Commodity Futures Trading Commission, the Swiss Financial Market Supervisory Authority, and the US Office of the Comptroller of the Currency.
The Financial Conduct Authority reported that “ineffective controls” at these five banks (with Barclays still under investigation) allowed traders to put the banks’ interests and their own bonuses ahead of those of their clients.
The traders at these banks colluded with each other and attempted to manipulate currency rates by sharing information they had been trusted to keep confidential using code names and private chat rooms. Incredulously, not one person has yet been arrested!
It is conduct such as this that resulted in the damaged reputation of banks leading up to the 2008 global financial crisis, again, for which no one has been arrested. Apparently fines, even big ones, have not done enough to curb the financial corruption that has harmed so many hard working individuals.
I understand that currencies are necessary as a medium of exchange to buy the goods and services we need daily, but for long term funds and at current prices, I still recommend gold — the historically solid, tangible precious metal. Gold may be down, but it’s definitely not out!
In a recent interview, one industry expert in particular predicted that gold would reach new highs, possibly in the next five years, and quoted Warren Buffet in support of his recommendation that we stock up — “be greedy when others are fearful and be fearful when others are greedy.” This is your opportunity to set yourself up for the next run up.
For a history lesson on why this repeats over and over again, visit www.hiddensecretsofmoney.com
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