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Exactly What Kind Of "Hand Signals," Ringtones Did Traders Use To Front-Run Fannie Mae, Freddie Mac?

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Wall Street traders may be manipulating a key derivatives market and front running Fannie Mae and Freddie Mac, hurting the US-owned mortgage giants in the process, according to an FBI intelligence bulletin reviewed by Reuters. Using what Federal Bureau of Investigation agents described as "unsophisticated tradecraft," such as hand signals and special telephone ring tones, some traders are conspiring to rig rates on large orders submitted by Fannie Mae and Freddie Mac, or front running them in the interest rate swaps market, the document says. --Reuters, Jan 14, 2014

Are we thinking:

  • Marimba, for "It's go time"?
  • A recording of "Believe it or Not George Isn't at Home," for when it's NOT time to rig a rate?
  • Crickets, to indicate just sit tight?
  • Two tugs of the left ear means a huge order is about to be placed?
  • A shake of the head, and then, using one's left hand as a shield, a quick thumbs down with the right, for throw the ping pong match?

Exclusive: FBI suspects front running of Fannie, Freddie in swaps market [Reuters]