Thread by @Carlier_J87

RBS playing the innocent party again, blaming 'rogue' employees? Again claims made by RBS that are inconceivable & actually false given RBS control function obligations... @sambrodbeck @Eris_FX @TransparencyTF @True_and_FairUK @APPGbanking @appgonpbandffs telegraph.co.uk/money/consumer…

An older story but one that needs exposing. The bank claims it had no knowledge that an extra 0.06% had been added to the price/spread on FX payments between 2010-2014. Nonsense. The price/spread would've been signed off by senior managers and subject to all manner of oversight

Indeed, EVERY FX deal ticket, no matter how small will feature the amount of 'mark up' taken. It was a key performance metric of employees, departments and senior managers running those departments. Let's be clear, even a discrepancy of 0.06% would have been noticeable.....

However, how do we know that the extent of the additional 'mark up' was just 0.06%? Marking their own homework again. We only have RBS word for that, and that has proven to be 'less than reliable/credible/honest (delete as appropriate)' in recent years.....

And, let's be clear here, they are admitting to an amount of extra mark up, over and above, the mark up already applied. Importantly, however, RBS also refer to the amount as a % of transaction amount. Herein lies the biggest scam and concealment by banks......

All FX mark up is applied as a % of transaction, and as per a pre-defined price matrix. HOWEVER, despite knowing to the nearest penny how much they will therefore 'charge' the customer for every FX transaction, they NEVER disclose this to the customer, before or post trade...

This enables them to conceal the true fees being applied. WHEREAS, they could be easily and automatically include the precise cost to customer (over the prevailing interbank rate) in the pre-trade/transaction process, and with zero burden or cost for the bank to do so.....

Indeed, all it requires is to publish the mark up figure that will automatically appear on the deal ticket and be applied to the P&L of the person and department in question, to the customer pre-trade and enable the customer to confirm that they accept this charge?

The bigger question and concern is; Why does the @TheFCA continue to fight against this FX price transparency that could be so easily provided without cost or burden to the bank? And, to be clear, they are actively fighting such disclosure on behalf of the banks.