Daily Archives: November 11, 2013


Big banks may block traders from online chat rooms – WSJ

Big banks may block traders from online chat rooms – WSJ

(Reuters) – Big banks are considering disabling online chat rooms that link traders across many financial institutions over concerns of mounting scrutiny from regulators, the Wall Street Journal reported, citing people familiar with the discussions.

JPMorgan Chase (>> JPMorgan Chase & Co.), Credit Suisse Group (>> Credit Suisse Group AG) and Citigroup Inc (>> Citigroup Inc) among others, are reviewing chat-room use over concerns that some of those forums are seen by regulators as potential venues for collusion and market manipulation.

The probes are focused on chat rooms with names such as “The Cartel,” people told the Journal.

Chat communications have featured prominently in a five-year probe into manipulation of a key interest rate known as the London interbank offered rate, or Libor, which has cost banks billions of dollars in settlements, with more fines expected.


Banks Caught In Middle Of Regulators’ Fair-Lending Pursuits

Banks Caught In Middle Of Regulators’ Fair-Lending Pursuits

Law360, New York (November 08, 2013, 8:43 PM ET) — Federal and state regulators are increasingly enlisting banks in their pursuit of fair-lending and other violations at payday and auto lenders and other financial services providers with which they do business, a tactic that has also increased banks’ risk of penalties for conduct by third parties.

In late October, the Office of the Comptroller of the Currency was the latest to put out new guidance for banks’ responsibility to monitor the activities of third-party vendors that perform operations on behalf of the bank.