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Feb 5, 2014

Forex probe widens as New York banking regulator steps in

NEW YORK/LONDON (Reuters) – New York banking regulator Benjamin Lawsky is seeking documents from some of the biggest banks in foreign exchange trading, including Deutsche Bank, Goldman Sachs and Barclays, a source familiar with the matter said Wednesday, as a global probe into possible market manipulation widens.

At least seven other law enforcement offices and regulators internationally are investigating whether banks rigged the $5.3 trillion-a-day currency markets. Martin Wheatley, chief executive officer of Britain’s Financial Conduct Authority, said on Tuesday that his watchdog group’s probe could extend into 2015, and that the allegations it is looking into are “every bit as bad” as the Libor manipulation scandal.

Feb 4, 2014

Exclusive: Deutsche fires three New York forex traders – source

NEW YORK (Reuters) – Deutsche Bank AG DBKGN.DE has fired three New York-based currency traders, in the latest sign that a probe over alleged manipulation of foreign exchange markets is gathering steam, according to a source familiar with the situation.

Diego Moraiz, Robert Wallden and Christopher Fahy were terminated by the bank, which told trading floor staff of the development on Tuesday, according to the source.

Feb 4, 2014

New U.S. charge for man accused in underground online drugs market

NEW YORK (Reuters) – U.S. prosecutors unveiled a new charge on Tuesday against the man they accuse of creating the underground online drugs marketplace known as Silk Road, potentially adding years of prison time if he were convicted.

In an indictment filed in federal court in Manhattan, 29-year-old Ross Ulbricht is charged with engaging in a continuing criminal enterprise by acting as organizer and supervisor of at least five others who were violating a law against drug trafficking. The new charge carries a mandatory minimum sentence of 20 years in prison if he is convicted.

Jan 30, 2014

Bankers anxious over anti-money-laundering push to go after individuals

NEW YORK, Jan 30 (Reuters) – A new push by regulators and
lawmakers to hold individuals, rather than just institutions,
accountable for regulatory violations involving money laundering
is spooking members of the U.S. financial industry, an executive
of retail broker E*Trade Financial said on Thursday.

Speaking on a panel at an annual anti-money laundering
conference, John Davidson, E*Trade’s global head of
anti-money laundering, called a new bill in Congress, as well as
vows by regulators to take more action against individuals, “a
little scary.”

Jan 30, 2014

Analysis: To grow, Bitcoin may need to shed its world of intrigue

NEW YORK (Reuters) – Bitcoin enthusiasts were buzzing about the arrest of a high-profile promoter of the digital currency at Monday night’s weekly Bitcoin trading session in Manhattan’s financial district.

Charlie Shrem’s detention on money laundering charges the day before shocked New York’s Bitcoin community, which meets in a small conference room to trade the currency. It is contemplating the end of a world of intrigue away from the watchful eyes of police and regulators.

Jan 30, 2014

To grow, Bitcoin may need to shed its world of intrigue

NEW YORK, Jan 30 (Reuters) – Bitcoin enthusiasts were
buzzing about the arrest of a high-profile promoter of the
digital currency at Monday night’s weekly Bitcoin trading
session in Manhattan’s financial district.

Charlie Shrem’s detention on money laundering charges the
day before shocked New York’s Bitcoin community, which meets in
a small conference room to trade the currency. It is
contemplating the end of a world of intrigue away from the
watchful eyes of police and regulators.

Jan 28, 2014

New York may offer virtual currency regulations this year

NEW YORK (Reuters) – New York’s top bank regulator on Tuesday revealed new plans to regulate businesses handling transactions in bitcoin this year, saying the state may issue new financial services licenses tailored to virtual currencies.

Benjamin Lawsky, New York’s financial services superintendent, raised his idea for a “BitLicense” in a hearing a day after a prominent bitcoin entrepreneur was arrested on money laundering charges.

Jan 28, 2014

Prominent Bitcoin entrepreneur charged with money laundering

NEW YORK (Reuters) – The vice chairman of the Bitcoin Foundation, a trade group promoting the adoption of the digital currency, has been charged by U.S. prosecutors with conspiring to commit money laundering by helping to funnel cash to illicit online drugs bazaar Silk Road.

Charlie Shrem, who had financial backing from the Winklevoss twins and is well known as one of the bitcoin’s biggest global promoters, was arrested on Sunday at John. F. Kennedy International Airport in New York, the U.S. Attorney’s Office in Manhattan said on Monday.

Jan 27, 2014

Two bitcoin exchange operators charged in money laundering scheme

NEW YORK (Reuters) – Two men who operate bitcoin exchange businesses have been charged with money laundering for helping drug merchants exchange $1 million in cash for bitcoins, the digital currency, U.S. prosecutors said on Monday.

Federal prosecutors in New York announced charges against Charlie Shrem and Robert Faiella, both operators of bitcoin exchange businesses, for attempting to sell $1 million in the digital currency to users of the underground black market website Silk Road, which was shut down by authorities in September.

Jan 17, 2014

In wake of JPMorgan settlement, big banks add to defense funds

NEW YORK (Reuters) – Several large U.S. banks have set aside extra money to pay for potential legal costs in part because of JPMorgan Chase & Co’s massive $13 billion settlement with U.S. authorities over bad mortgages, according to two sources familiar with the situation.

The size of the JPMorgan settlement, which the government called the largest in U.S. history, led many banks to realize that the cost of resolving some of their own legal problems was likely to be higher than they had initially believed, the sources said.

    • About Emily

      "Based in New York covering financial crimes, including insider trading, investment scams, accounting fraud and financial firm misconduct."
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