In this case, Markopolos says BNY Mellon and State Street we’re 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,” he claims.
Will our federal government ignore him again? Probably. Happily though, all 50 states will probably be going after the banks on this. But we may get settlements where the banks admit no guilt. What we need is criminal prosecutions, then frog-marching the convicted felons to prison after stripping them of their assets. Then the criminality might stop.