The expectation that the price of Bitcoin will rise rapidly once institutional money begins to flow into cryptocurrency, has brought a lot of Bitcoin holders looking forward to it. Official entry of Wall Street. -Markets Bitcoin Really Needs Wall Street
Currency Markets Fraud
Global Banks Pay Over $ 10 Billion in Penalties to Settle Their Fraud Allegations About Their Customers Name . Banks have generally exchanged their customers early – a process of executing transactions for the bank's exclusive trading desk before executing transactions on behalf of their clients.
They used their knowledge of the client's impending trade to make profits. bank. The list of banks that have established themselves include Bank of America, Citi, HSBC and Barclays. The penalties paid by the banks may not be the end of the story – a former HSBC FX trader, Mark Johnson, has been convicted of nine fraud charges for placing a $ 3.5 billion order Cairn Energy to convert dollars into pounds.
Goods – Affecting the Main Street
Major banks played a large role in both the physical space of commodities and the commodity derivatives market. After Goldman Sachs entered the aluminum sector in a major way, this led to an increase in prices
According to some allegations, this would not be due to the simple imbalance between the supply and the demand but to a manipulation of the market. as well as. This has led traditional aluminum users, like Coca Cola, to complain to the LME about how these actions affected it. Goldman has been fined for causing soaring oil prices. More recently, Barclays was sued for $ 850 million by a hedge fund to abuse the knowledge of its trades and raise the price of copper
If market manipulations in the FX and the reference rate used to fix interest rates in various contracts around the world is the London Interbank Offered Rate (Libor). . It is calculated by asking various banks about interest rates that they expect to pay on a given day.
There are a number of Libor-based derivatives and banks have manipulated the Libor (by inflating or deflating interests (19459003)
The Libor scandal has led banks to pay fines record – Deutsche Bank fined $ 2.5 billion and resulted in some high scalps, including the resignation of Marcus Agius and Barclays CEO Bob Diamond
Increased volatility and further examination
of the rapid rise in prices, it is arguable whether the entry into Wall Street will have a generally positive impact.This could result in greater volatility and a greater Regulatory oversight
The examples mentioned above do not even speak of mortgage markets, where excessive risk-taking by banks caused a global financial crisis in 2008.
Given the history of Wall Street businesses in pursuit of higher profits, even if it means ignoring their fiduciary responsibilities, Bitcoin could be better if Wall Street kept it out.