Econintersect: Harry Markopoulis is famous as the Bernie Madoff whistleblower whose repeated complaints eventually brought the scrutiny that ended the Madoff scheme. He is now speaking out on the investigation of banks that are alleged to have stolen fractions of a percent from every Forex trade they made on behalf of clients. According to the Wall Street Journal, a suit filed in Virginia claims that state pension funds suffered financial damage from the scheme. Three other states, Florida, Californis and Tennessee have also filed suit over the alleged fraud. According to The Daily Ticker, Markopoulis expects all 50 states to join the parade of suits when all is said and done. He also said that he hopes a settlement is avoided and the banks are forced to admit guilt. The Daily Ticker says that Markopoulis is the person who uncovered the alleged scam.
The Advisor One report of this matter referred to the problem as a “dispute over fees.” But the alleged actions appear to be more than just about “fees.” Markopoulis is quoted in The Daily Ticker:
Markopolos says BNY Mellon (BK) and State Street (STT) are taking about “three tenths of a percent from every forex transaction for pension funds” by back-timing the trade to benefit banks at the detriment of their pension fund clients. “It’s almost the exact same scheme as the market timing scandals of 2003,” according to a transcript of the interview.
The interview can be viewed on video:
Sources: The Daily Ticker, The Wall Street Journal and Advisor One
