Germany: Top financial regulator says forex, metals rigging worse than LIBOR

The ongoing investigations into allegations of the manipulation of foreign exchange rates as well as precious metals prices are considered worse than the LIBOR scandal by Germany’s top financial authority Bafin.

While the scandal that spread across the globe as various competition authorities found major banks had colluded to fix the LIBOR interest rate benchmark – resulting in about $6 billion in fines – reports say Germany’s financial regulator predicts the metals and forex manipulation cases are worse.

Bafin president Elke Koenig said in a speech Thursday that the new cases could be more damaging “because such reference values are based – unlike LIBOR and Euribor – typically on transactions in liquid markets and not on estimates of the banks.” The remarks made Koenig the first financial regulator to comment on the ongoing investigations.

Bafin first announced Wednesday it would join Switzerland, the US and the UK in investigating allegations of foreign exchange rate manipulation.

Full Content: Bloomberg

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