South Africa's ANC attacks banks over forex rigging charges

Samuel SharpFeb 17, 2017

South Africa's ruling ANC party on Thursday called for the toughest possible sanctions against more than a dozen local and foreign banks accused of rigging the rand currency.

.

The Commission on Thursday afternoon said in a statement it would proceed to prosecute 17 worldwide banks it alleges were guilty of price fixing and market allocation in the trading of foreign currency pairs involving the rand.

Inducted banks include Bank of America Merrill Lynch International Limited, BNP Paribas, JP Morgan Chase & Co, JP Morgan Chase Bank N.A, Investec Ltd, Standard New York Securities Inc., HSBC Bank Plc, Standard Chartered Bank and Credit Suisse Group.

The commission found that the banks all had a gentleman's agreement dating back to at least 2007 to collude on prices for bids, offers and bid-offer spreads for spot trades on rand-to-dollar exchanges. Investec said it will cooperate with the competition authorites.


A member of the African National Congress Youth League protests in front of ABSA Bank against what they argue is the bank benefiting from an apartheid-era bailout, in Durban, South Africa, January 26. "The fact that some banks may have been partly responsible for the weak and volatile rand through currency manipulation is deeply troubling", the organisation said on Thursday.

Speaking in parliament earlier, South African President Jacob Zuma welcomed the competition commission's investigation, saying that the government was prepared to act against the distortion of the financial markets "to protect our country's economy". The move signals that South Africa's watchdog may be gearing up to open settlement although it did not indicate whether the fines will be imposed on the global revenues of each bank or just to their domestic arms. Zuma has suggested that Standard Bank, Barclays Africa Group Ltd., FirstRand Ltd. and Nedbank Group Ltd. may have colluded when they closed accounts operated by companies controlled by members of the Gupta family, who are his friends and are in business with his son.

Banks working with Commission ABSA said it will continue to co-operate with the Commission during the prosecution of this matter, adding that no fines were brought against the bank.

He called on the government and all state institutions to disassociate themselves from the banks that are involved in collusion.

Related Articles:



« Previous article


Popular Pages

Embattled Toshiba 'remains committed' to new nuclear plant in Cumbria
Last month Toshiba announced it was re-examining its involvement in all nuclear projects outside Japan, including Moorside. The company previously planned to limit the sale to 20 per cent to maintain control.

The Weeknd just dropped a track dissing Justin Bieber
Recording artist Justin Bieber performs onstage during the 2016 Billboard Music Awards at T-Mobile Arena on May 22, 2016 in Las Vegas, Nev.

New England Patriots, Tom Brady discussing extension
It pains me to say it, but Tom Brady is the greatest quarterback of all time. That's why I want to keep taking care of what I need to take care of".

'Hot Felon' Jeremy Meeks Walks In New York Fashion Week
The "hot felon" made his runway debut by walking in the Philipp Plein show on Monday (Feb. 13); he even opened the show. During his NYFW debut, Meeks had some pretty heavy hitters following him on the runway.

Goals galore as Bayern, Real dominate ECL
The result? Two goals in the first ten minutes of the half to blow the match wide open. Napoli had a goal disallowed for offside in the 80th.

Trojan Horse CETA: Protests arise after agreement approval
Last month Liam Fox, the trade secretary, visited his Canadian counterpart, François-Philippe Champagne, in Montreal. On Wednesday, the European Parliament voted to ratify the Comprehensive Economic and Trade Agreement ( CETA ).

If you want a 2017 HTC phone, it won't come cheap
HTC is making a mobile VR headset that's being described as something different than Google Daydream View and similar headsets. The company made a decision to unveil its sales percentages and from there we can see that HTC has an operating loss of $116.

Ishant, Stokes, Morgan valued at big bucks for IPL auction
Mathews featured in Kolkata Knight riders, now-disbanded Pune Warriors India and Delhi Daredevils in the history of IPL. Tiwary admitted: "After missing out on the last season, it's important for me to be part of the IPL", he said.

Nets Ignore Humana Announcement to Pull Out of Obamacare for 2018
She said the trade association took the position after holding a conference call with stakeholders across the country Friday. Representatives of the Health and Human Services Department did not immediately respond to a request for comment.

ACC Basketball: Mark Gottfried will not return to NC State next season
This time around, North Carolina State now owns a almost even 14-13 record in addition to a disappointing 3-11 mark in ACC play. The NC State men's basketball team denied any rumors regarding the firing of head coach Mark Gottfried.