Banker Slime

NY Attorney General Schneiderman has filed a lawsuit alleging that Barclay’s lied to its clients about the role of HFT firms in its “dark pool.” Basically, it is alleged, Barclay’s lured clients by lying to them and then sold them out to HFTs.

Schneiderman cited a pattern of “fraud and deceit” starting in 2011 in which Barclays hoarded orders for stocks and assured investors they were protected from high-frequency firms while simultaneously aiding predatory tactics.

Too many MBAs, too much greed. Shut ’em down. All of them. The HFTs and the big banks. The market structure is broken and will collapse without prompt action. But note that, as usual, the SEC is coddling HFTs while it falls to Schneiderman to take some action. Don’t want to jeopardize those payoffs, y’know.

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