‘If you ain’t cheating, you ain’t trying’ – how forex has changed
foreign exchange market. There have also been fines levied against banks for manipulating other over-the-counter markets such as LIBOR, the ISDAfix and the gold market.
In addition, there have been f ines for other bad behaviour by banks like money laundering, their role in the sub-prime mortgage crisis, violating sanctions, manipulation of the electricity market, assisting tax evasion, and misselling payment protection insurance. This brings the total amount of f ines which banks have paid since 2008 to over $160bn (R1.9tr). To put this in
City University London context, this is more than what the UK government spent on education last year.
CLEANING UP THEIR ACT
As the cost of misbehaviour mounts, banks are under increasing pressure to clean up their act. Despite widespread public cynicism, much has already changed within the banking sector. Banks have beefed up their risk function and increased oversight of traders.
They have also changed the “tone from the top”. Senior managers of the boom years who promoted a harddriving, risk-taking culture have largely