Nov 10 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
JPMorgan Chase, Credit Suisse Group and
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.
Regulators and investors are concerned about the integrity
of financial benchmarks after the investigation into the rigging
of Libor rates.
The Swiss Financial Market Supervisory Authority, FINMA,
earlier said that it was "conducting investigations into several
Swiss financial institutions in connection with possible
manipulation of foreign exchange markets."
None of the banks could immediately be reached for comment
by Reuters outside of regular U.S. business hours.