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FBI Suspects Front Running Of Fannie, Freddie In Swaps Market

Tuesday, January 14, 2014 - 7:02 AM
"Wall Street traders may be manipulating a key derivatives market and front running Fannie Mae and Freddie Mac, hurting the US-owned mortgage giants in the process, according to an FBI intelligence bulletin reviewed by Reuters. Front running occurs when someone with advance knowledge of another market participant's plan to make a sizable transaction puts an order in first, often profiting from a market move that can occur once the big trade has gone through."

http://www.reuters.com/article/20...amp;feed..
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