Broking Frauds - Sharekhan & Others fined for Front-Running

[ashu1234]

FYI

Forex market manipulation

https://en.wikipedia.org/wiki/Libor_scandal
http://www.cfr.org/united-kingdom/understanding-libor-scandal/p28729
http://www.ft.com/indepth/libor-scandal

Conspiracy theories ,gossips exists on papers , not in lawsuits ,penalties and out of court settlements

Like I said earlier , many people still believe this is a fair world.

It is a financial jungle out there and its about trillions of dollars.

Why did you brought up Libor into picture? Libor is UK's affair.
My comments were very particular about forex and some truly international commodities like Gold or say Oil, where stories have written which does not makes sense in long run, yes in short term its possible to move any commodity but not infinitely as stakes are involved throughout globe and its beyond comprehension for many of us, coz what will hit you in future is beyond the reach of demand or supply side riggers.
And my conclusion is that what if scams do happen, if i go by the theories then its not safe to put money anywhere including my sbi or rbi....price discovery will be an ongoing effort in the markets, a few jerks will come coz there will be always some loopholes which will be fixed in the process.
So its not point of what one believes or not, ultimately its a demand and supply market everywhere, and as a trader we are here to exploit that, so if some scandal unearths and lawsuits happens things will always going to be settled with matching counter parties who agree to take risks and nothing can replace that, if you have any fair mechanism then please enlighten me.

 

[TradeOptions]

FYI

Forex market manipulation

https://en.wikipedia.org/wiki/Libor_scandal
http://www.cfr.org/united-kingdom/understanding-libor-scandal/p28729
http://www.ft.com/indepth/libor-scandal

Conspiracy theories ,gossips exists on papers , not in lawsuits ,penalties and out of court settlements

Like I said earlier , many people still believe this is a fair world.

It is a financial jungle out there and its about trillions of dollars.

Former Libor ‘Ringmaster’ Hayes Gets 14 Years for Libor Rigging
http://www.bloomberg.com/news/artic...ringmaster-hayes-guilty-of-manipulating-rates

 

[timepass]

You're right about the money part. JPM paid around 30 billion to settle pending lawsuits. They'd just add it up as a cost of doing business. But, I doubt locking them up in jails would serve any purpose. Locking them up might put them out of business and might scare others but this, I think, is a question of mentality. Ethics can't be taught, it has to be there in the character of leaders and the business. They would keep coming back in different forms.

Of course, they will keep returning in different forms, doesn't mean that we should legalize it. Jailing them will certainly act as a deterrent, if not put a stop to it. If it is only monetary penalty, then as you said yourself, it till only be considered the "cost" of doing business and carry on. It may even encourage some others to do it.

 

[NJ23]

Of course, they will keep returning in different forms, doesn't mean that we should legalize it. Jailing them will certainly act as a deterrent, if not put a stop to it. If it is only monetary penalty, then as you said yourself, it till only be considered the "cost" of doing business and carry on. It may even encourage some others to do it.

No of course not. Wrongdoing shouldn't go unpunished. It has to be correct so that it's effective. Like in cases of Raju, Rajratnam, Gupta. Nailing lower level staff won't change the attitude of the leadership. A trader being punished, tech staff being the guilty one would make an ineffective law enforcement. Making the leadership understand that no bullshit would be tolerated is the way to go. Making them responsible for the actions of the whole firm. Short sightedness causes all these things. Immediate gratification, at the end of the lower level staff causes them to ignore the opportunity cost of not being in the business/job. Unless compliance becomes a priority, it wouldn't change. What I'm trying to get across here is that compliance has to come from within the firm then we'd be able to see non compliance being prevented.

 

[timepass]

No of course not. Wrongdoing shouldn't go unpunished. It has to be correct so that it's effective. Like in cases of Raju, Rajratnam, Gupta. Nailing lower level staff won't change the attitude of the leadership. A trader being punished, tech staff being the guilty one would make an ineffective law enforcement. Making the leadership understand that no bullshit would be tolerated is the way to go. Making them responsible for the actions of the whole firm. Short sightedness causes all these things. Immediate gratification, at the end of the lower level staff causes them to ignore the opportunity cost of not being in the business/job. Unless compliance becomes a priority, it wouldn't change. What I'm trying to get across here is that compliance has to come from within the firm then we'd be able to see non compliance being prevented.

These cases are exceptional. As for Ramlinga Raju, I think that he wanted to go to jail to get away from his creditors . The other two cases are not of our markets.

Of course, the change must come from within, but it won't until something drastic happens. I mean, how many such cases like Emkay, Sharekhan etc. must we see before anyone goes to jail ?? It won't happen without consumer activism providing the external stimulus for action from within.