Primary Dealers Rigged Treasury Auctions

[nitro]

Primary Dealers Rigged Treasury Auctions, Investor Lawsuit Says

The same analytical technique that uncovered cheating in currency markets and the Libor rates benchmark -- resulting in about $20 billion of fines -- suggests the dealers who control the U.S. Treasury market rigged bond auctions for years, according to a lawsuit.

The analysis was part of a 115-page lawsuit filed in Manhattan federal court on Aug. 26 by Quinn Emmanuel Urquhart & Sullivan LLP and other law firms. The plaintiffs built their case against the 22 primary dealers who serve as the backbone of Treasury trading -- including Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley -- using data from Rosa Abrantes-Metz, an adjunct associate professor at New York University who has provided expert testimony in rigging cases...

http://www.bloomberg.com/news/artic...igged-treasury-auctions-investor-lawsuit-says

 

[CBC]

Looks like LIBOR II.

I think the government took that $20 Billion and kept all of it. not 1 single cent went to the traders that lost out because of the LIBOR incident.

 

[Sig]

Looks like LIBOR II.

I think the government took that $20 Billion and kept all of it. not 1 single cent went to the traders that lost out because of the LIBOR incident.

That's how fines work in the U.S., any fine for anything. Those impacted are free to file a civil suit, and many have. In some cases the court can also order restitution, but it is separate from the fines. It's how the law has worked in the U.S. for the past couple hundred years.

 

[CBC]

I recon the government has found the banks nipple and has decided to milk and milk and milk.

You can milk anything that has nipples right?