Quick Summary

This blog uncovers one of the largest but least-reported Wall Street scandals: five major banks admitted to rigging global currency and interest rate markets, affecting $350 trillion worth of financial products worldwide. It explains how this manipulation impacted everyday Americans—higher borrowing costs, lower savings returns, and pension losses—and why the media barely covered it. The post ends with steps readers can take to protect themselves from future manipulation.

In the wake of the 2008 financial crisis, a startling revelation emerged that should have shaken the foundations of our financial system.

Wall Street Scandal: The Market Manipulation You Never Heard About

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Five major banks admitted to rigging global currency markets, paying $5.6 billion in fines.

The manipulation affected $350 trillion worth of financial products worldwide.

Despite its massive scale, the scandal received little sustained media attention.

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Yet, this explosive news barely made a ripple in the mainstream media.

Today, we’re uncovering a story of market manipulation that continues to affect millions of hard-working Americans – a story you’ve likely never heard.

The Scandal That Wasn’t Front Page News

In May 2015, five of the world’s largest banks pleaded guilty to manipulating the global foreign exchange market and rigging benchmark interest rates.

These banks – Citigroup, JPMorgan Chase, Barclays, Royal Bank of Scotland, and UBS – agreed to pay a combined $5.6 billion in fines.

This scandal involved the $5.3 trillion-a-day foreign exchange market, the world’s largest financial market.

The benchmark interest rate they manipulated, known as LIBOR (London Interbank Offered Rate), affects the cost of various loans, including credit cards and vehicle financing.

LIBOR is used to set the interest rates for an estimated $350 trillion worth of financial products worldwide.

You’d expect such news to dominate headlines worldwide. Instead, it was quietly reported and quickly forgotten.

Breaking Down the Banking Bombshell

These banks confessed to actively interfering with the foreign exchange market from 2007 to 2013.

They used chatrooms with names like “The Cartel” and “The Mafia” to coordinate their trading activities and manipulate currency prices.

The manipulation of LIBOR rates began as early as 2003 and continued until 2012.

Traders at these banks would submit false rates to benefit their trading positions.

Their actions directly impacted the cost of borrowing for millions of individuals and businesses worldwide.

The effects rippled through the entire global economy, potentially affecting everything from mortgage rates to the price of imported goods.

Most alarmingly, there’s evidence to suggest that these practices haven’t stopped.

In 2020, JPMorgan Chase was fined another $920 million for manipulating precious metals futures and Treasury securities markets, indicating ongoing issues in market integrity.

The Real-World Impact on Everyday Americans

The ramifications of this market manipulation touch nearly every aspect of our financial lives:

Higher costs for mortgages, car loans, credit cards, and other forms of borrowing

Lower returns on savings accounts and certificates of deposit

Pension funds, which many Americans rely on for retirement, were also affected. CalPERS, the largest public pension fund in the US, sued these banks for $150 million in damages from manipulated LIBOR rates.

The artificially low interest rates resulting from this manipulation led to lower returns on savings accounts. In 2012, the average interest rate for savings accounts was just 0.08%, significantly lower than pre-manipulation levels.

Economic instability affecting jobs, investments, and overall financial security

Erosion of trust in our financial institutions

Why Didn’t We Hear More About This?

The lack of widespread coverage is almost as concerning as the scandal itself.

Financial markets can be complex, making stories about market manipulation challenging to convey.

Additionally, the power and influence of major financial institutions might create reluctance in some media circles to scrutinize their actions too closely.

A Pew Research Center study found that in the week following the guilty pleas, the story accounted for only 0.2% of mainstream media coverage.

What Can We Do About It?

While the scale of this problem might seem overwhelming, there are steps we can take:

Stay informed about financial news and market practices.

Support initiatives promoting greater transparency in financial markets.

Encourage news outlets that investigate and report on financial crimes.

Engage with policymakers about your concerns regarding market manipulation and financial regulation.

Shining a Light on Wall Street’s Shadows

The story of Wall Street banks admitting to market manipulation is a stark reminder of the need for vigilance in our financial system.

As engaged citizens, we must continue to demand accountability, transparency, and fairness in our financial markets.

By staying informed and engaged, we can work towards a future where such manipulations are not just front-page news but a thing of the past.

Remember, knowledge is our greatest defense against manipulation.

Stay informed, stay engaged, and never stop questioning the status quo.

The future of fair and honest finance depends on it.

WARNING: Every Investment Tied to the “Paper Asset” Market Is Vulnerable. Stocks, Mutual Funds, Bonds… You Name It…

They Are All Controlled and Manipulated by Wall Street. If you’ve ever wondered how the “fat cats” get rich after a crash… (while everyone else is licking their wounds)… it’s because the market manipulators know how to profit at your expense.

Now Is The Time To Get Informed! America is losing its status as the world leader. A number of nations want the dollar replaced as the world’s reserve currency. Should that happen, you’d better have your money in assets that hold real value.

With the printing presses on stand-by, the Fed could easily wipe out even more of the value of each dollar in your retirement account. The $34-trillion in debt saddling our nation only adds fuel to the fire. You need a hedge against the financial insanity.

FAQs

What is Wall Street market manipulation?

Wall Street market manipulation refers to large financial institutions unfairly influencing prices or rates for profit. This includes rigging benchmarks like LIBOR, which affects loans, mortgages, and credit cards worldwide.

Which banks were involved in the 2015 market manipulation scandal?

Citigroup, JPMorgan Chase, Barclays, Royal Bank of Scotland, and UBS all pleaded guilty to manipulating the foreign exchange market and LIBOR rates, paying $5.6 billion in fines.

How did market manipulation affect everyday Americans?

It increased borrowing costs, reduced savings account returns, and hurt pension funds. For example, CalPERS sued banks for $150 million in damages from LIBOR manipulation.

Why didn’t the media cover the scandal more widely?

The complexity of financial markets and the influence of major banks meant the story was difficult to explain and received only 0.2% of mainstream coverage during the week of the guilty pleas.

How can I protect my money from Wall Street market manipulation?

Diversify your assets beyond paper investments, focus on tangible and income-generating strategies, and stay informed about financial regulations and scandals.

About the Organization

Legacy Alliance is dedicated to helping investors build and protect their wealth with transparent, resilient strategies. By focusing on tangible, income-generating assets and education, we empower individuals to achieve financial freedom beyond the reach of Wall Street manipulation.

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