Skip to main content

Barclays Trader Who Wanted Access To Hottest Rate Rigging Chatroom Had To Prove Himself During Rigorous 4-Week Probation Period

"Mess this up and sleep with one eye open at night."

"That's gonna be you up there if you fuck this up."

As you may have heard, earlier today a slew of global banks pleaded guilty to manipulating LIBOR and currency rates, and agreed to pay over $5 billion in fines to various regulators. We've already been privy to manyof the most incriminatingand embarrassingmessages exchanged between traders smart enough to instant message each other all day every day about engaging in fraud. Today brings a look at what it took score an invite to "The Cartel," AKA one of the most prestigious chat rooms for this particular type of scam; apparently the process to become a member was not unlike that of joining Crips and Bloods.

In one instance, recounted by the New York State Department of Financial Services (NYDFS), a Barclays forex trader was looking for an invitation to a particularly exclusive chatroom known as "The Cartel," which included traders from Citigroup, JPMorgan, UBS, RBS, and Barclays. The trader, who was the main Euro trader for Barclays in 2011, made various arguments about how he "would add value" to the chatroom, according to the NYDFS. Ultimately, they let him join for a one-month trial, but allegedly with a pretty ominous warning: "[M]ess this up and sleep with one eye open at night."

Crooked Wall Street traders allegedly told a newbie: 'Mess this up and sleep with one eye open at night' [BI]


Banks Will Pay $5.6 Billion To Settle...Y'Know

Foreign exchange manipulators, come on down!

Accused Libor Manipulators' Nicknames For Each Other Could Use Work

(Allegedly) rigging the London Interbank Offered Rate doesn't leave a lot of time left over for coming up with creative nicknames for your co-workers, but next time let's try to do a little better.

9-Figure Fine Might Have A Negative Effect On Bonuses: RBS

Those rate rigging penalties aren't going to pay for themselves.

Carl Icahn Gives Son Four Years To Prove Himself

Ten years ago, Carl Icahn hired his son Brett to be an analyst at Icahn Enterprises and the kid didn't fuck anything up so he got to keep his job. Two year ago, Carl gave Brett and another employee, David Schechter, $300 million to invest under the "Sargon portfolio," and the guys returned 96 percent (before fees) through June. Last month, Carl tossed the duo an additional $3 billion and a contract that expires in 2016, at which time Papa Icahn will either officially Brett a worthy successor or offer to serve as a reference for his next gig. Under a 46-page legal agreement filed with federal regulators last month, Brett Icahn and Schechter will get to invest their boss’s capital in companies with stock market values between $750 million and $10 billion. The deal may free the elder Icahn, who still has final say over many aspects of the portfolio, to focus on larger targets for shareholder activism. Brett, who turns 33 this month, along with Schechter has been running $300 million for his father, who owns more than 90 percent of Icahn Enterprises LP, a holding company with $24 billion in assets including activist investing partnerships as well as the Tropicana casinos, an oil refiner and an auto-parts maker. The arrangement expires after Carl turns 80 in 2016, giving Brett the chance to both prove his mettle as a successor and develop a track record to start his own hedge fund. After hiring Brett as an investment analyst a decade ago, Icahn allocated the $300 million to his son and Schechter in April 2010 to invest in loans and securities of companies with less than $2 billion in equity value. Their investments, internally dubbed the Sargon portfolio, generated a gross cumulative gain of 96 percent by the end of June, according to a July 27 filing with the U.S. Securities and Exchange Commission...“These two guys doubled our money over the last two years,” the elder Icahn said in an interview. “You can’t complain about that.” Carl Icahn Hands Son Brett $3 Billion To Prove His Mettle [Bloomberg]