The Forex market is the largest in the world and the least understood. Since the late 90’s, traders and asset managers have flocked to it as an alternative to trade, compared to other common markets (Stocks, Bonds, Futures).
But due to the fact that the market is decentralized, and unregulated, it also attracted a large amount of fraud, on many levels. First, there was outright theft by groups such as the one led by Trevor Cook ($190 Million Ponzi scheme). Then there were sham brokers, in the most extreme case, like One World Forex, that simply didn’t bother clearing client orders and used client funds to finance lavish lifestyles and a movie that was never released featuring Busta Rhymes. Those in the new growing retail market on both sides of the dealing desk developed a special bond going through a unique experience that just wasn’t possible in other markets.
It was said that this was a retail problem, that serious institutional Forex was not aparty to such nonsense. But now the world’s largest investment banks are under investigation by the Department of Justice for Forex market rigging. This includes names such as Goldman Sachs, Lloyds of London, JP Morgan Chase, Barclays, Citigroup, just to name a few (the full list of names has not been released).
– Forex nixon shock
via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/KkvF30XPPNM/story01.htm globalintelhub