zerohedge.com / by Tyler Durden on 05/20/2015 21:44
Spot the banana republic(s):
- In one country, several of the world’s largest banks settle as petty criminals for rigging the world’s largest market and defrauding countless investors. Some get a wristslap. Others, those who have been caught previously manipulating virtually every other market, get probation and promise never to manipulate again despite promising just that a few years ago. Nobody is arrested. Nobody goes to prison.
- In another country, a member of a central bank’s executive committee tells a select group of hedge fund millionaires precisely what market moving thing said central bank will do, giving them a 10 hours headstart over the general public to put on the appropriate trades. Hedge funders make millions thanks to the leak defrauding countless investors who do not have the material, market-moving information; central bank blames “internal procedural error.” Nobody is arrested. Nobody goes to prison.
- In a third country, the central bank governor is arrested in a bribery probe that also targeted a former presidential aide. The president says “Nobody is above the law. I’m the first one to regret that these situations are occurring and the first to demand that justice is served.”
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We are talking about today’s record-breaking FX rigging settlement, yesterday’s premeditated leak by ECB’s Benoit Coeure to hedge funds at the Brevan Howard Centre for Financial Analysis, and ironically, the arrest of Guatemala’s central bank governor hours ago.