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Banks Pledge To Tighten Up Lax Controls That Previously Allowed Employees To "Double Team" Foreign Currency Markets

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Traders worked together to “whack” the market, called themselves a “cartell” and congratulated each other for a job well done, according to transcripts released by regulators today. “Ok, i got a lot of euros,” a currency trader at JPMorgan Chase & Co. (JPM) said in an undated 3:51 p.m. message to his counterpart at Citigroup Inc. (C) A minute later he says, “tell you what, lets double team it.” Dozens of chats spanning four years from 2008 and rife with misspellings were released by regulators as they reached the first settlements in the global probe into the manipulation of foreign-exchange benchmarks. Citigroup, JPMorgan, Royal Bank of Scotland Group Plc, HSBC Holdings Plc (HSBA) and UBS (UBSN) AG were ordered to pay about $3.3 billion. The banks said in statements today that they have been working to improve controls and don’t tolerate such behavior...Breaches of client confidentiality and inadequate chat-room supervision are at the heart of regulators’ findings in the foreign exchange probe that commenced over a year ago. [Bloomberg]