Madoff whistleblower: Here's the next big fraud

[cali]

The man whose e-mails detailing Bernie Madoff's Ponzi scheme were ignored by the Securities and Exchange Commission has a new target — foreign exchange fraud.


Harry Markopolos, an independent financial fraud investigator and the subject of a film, Chasing Madoff, which opened Friday, told CNBC Wednesday, "State Street and Bank of New York each stole billions of dollars from pension funds around the country, three-tenths of one percent off every transaction," he said.

Pension funds are often major players in international investments and need foreign currency to complete those overseas transactions. Banks typically supply those currency services as part of a package of services for the pension funds' business.


"If you're a credit card holder and you go to Europe, and your bank charges you 3 percent for a foreign currency transaction, well, that costs them maybe three basis points" so they get a huge markup, he pointed out. He said the two banks hid the charges in what was contracted as a free service. Other banks, such as Capital One, have done away with forex fees.

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http://www.usatoday.com/money/industries/brokerage/story/2011-08-28/Madoff-whistleblower-Heres-the-next-big-fraud/50138186/1

[midnight]

1. K&R

[Firebrand Gary]

2. No wonder why we cannot get someone appointed to the CFPB.

[salin]

3. There used to be a DUer who often warned about State Street and their defrauding

of pension plans.

[salin]

4. kick so later morning Duers can see.