Like Anthony Weiner for fans of chaos and heartbreak and/or the terminal decline of the United States, interest-rate swaps are the gift that keep on giving for Wall Street regulators.
Which is to say: Five months after Corbat & co. ponied up $425 million to the CFTC because one of their ISDAfix traders couldn’t help bragging about “pushing” the market and punctuating it with a smiley face, the authorities are going back over this tremendously fruitful ground in search of a few >: )
The bank said in a quarterly securities filing that the Commodity Futures Trading Commission is investigating “the trading and clearing of interest rate swaps by investment banks….”
Citigroup’s latest disclosure could signal the agency is looking into another aspect of how banks deal with swaps. Throughout the year, multiple pension funds have sued more than a dozen banks, including Citigroup, alleging they conspired to prevent other companies from developing exchange-like trading for interest-rate swaps….
Separately, the CFTC has fined some banks in recent months, including Deutsche Bank AG, J.P. Morgan Chase & Co. and Barclays PLC, over failures to reports swaps trades in a timely and accurate way.