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History of IMS Currency CurrencyExchange Characterization of Currency The Billion Dollar Question? What is Currency? Answers-Past, Present, Future Characterization.

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Presentation on theme: "History of IMS Currency CurrencyExchange Characterization of Currency The Billion Dollar Question? What is Currency? Answers-Past, Present, Future Characterization."— Presentation transcript:

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2 History of IMS Currency CurrencyExchange

3 Characterization of Currency The Billion Dollar Question? What is Currency? Answers-Past, Present, Future Characterization of a Currency Transaction The 50K Mystery What is the Value at the Point of Conversion?? Trading your Agenda…How? Can Currency Convert like other Commodities? Precise Point of Conversion Report FX Characterization and Agendas Today’s outline for John Golding

4 Billion Dollar Lawsuit NY prosecutors sue XXXXXXXX over forex claims Andrew Longstreth Reuters 11:17 p.m. CDT, October 4, 2011 (Reuters) - Bank of XXXXXXXXXXX was sued on Tuesday by New York federal and state prosecutors who accused the bank of cheating clients in foreign exchange transactions. In two separate lawsuits seeking in excess of $2 billion, the Manhattan U.S. Attorney and the New York Attorney General alleged the bank misled clients about the method for determining what currency exchange rates it used for certain foreign exchange transactions. Both lawsuits targeted the "standing instruction" service offered by the bank in which it provides clients with an as-needed basis for foreign exchange services. Prosecutors accused the bank of promising clients the best available rate but instead giving them the worst or nearly the worst and then making a profit for itself from the price differential. The lawsuit filed in New York state court by New York Attorney General Eric Schneiderman is seeking to recover nearly $2 billion for XXXXXXX clients nationwide. Manhattan U.S. Attorney Preet Bharara said his lawsuit, filed in federal court, is seeking "hundreds of millions of dollars" in civil penalties on behalf of the government. A XXXXX spokesman said in a statement that the New York Attorney General's action was based on a "fundamental misunderstanding" of the foreign exchange market and the role of custodian banks. "Simply put, this is the kind of prosecutorial overreach that ill serves New York, New Yorkers and the pension funds that the Office of New York Attorney General purports to represent," said the spokesman. He also said that the U.S. Attorney's lawsuit is flawed. "It fundamentally misunderstands and mischaracterizes the global foreign exchange market and the valuable services we provide to our clients as a principal in foreign exchange transactions," he said. CAMPAIGN OF DECEPTION According to the lawsuit filed by Schneiderman's office, XXXXXXXX made misrepresentations about its foreign exchange operations to some of the most recognizable corporations, investment funds, educational institutions, pension funds, and governmental organizations in the world, including Microsoft Corporation, Sears, Roebuck & Co, the World Bank, Duke University, and The Walt Disney Company. From 2001 to the present, the bank engaged in a "multi-pronged campaign of deception" designed to induce private and government clients into believing that they would receive the best rate of the day for their foreign currency transactions, the lawsuit said. New York is the latest state to bring claims against XXXXXXXX, which has been battling allegations of FX overcharging for months. Virginia and Florida filed lawsuits against the company in August.. In two separate lawsuits seeking in excess of $2 billion, the Manhattan U.S. Attorney and the New York Attorney General alleged the bank misled clients about the method for determining what currency exchange rates it used for certain foreign exchange transactions. mischaracterizes "It fundamentally misunderstands and mischaracterizes the global foreign exchange market and the valuable services we provide to our clients as a principal in foreign exchange transactions," he said.

5 The Atlantic Charter 1941

6 Bretton Woods July, 1944

7 The Nixon Shock The Nixon Shock was a series of economic measures taken by U.S. President Richard Nixon in 1971 including unilaterally cancelling the direct convertibility of the United States dollar to gold that essentially ended the existing Bretton Woods system of international financial exchange.Richard NixonUnited States dollargoldBretton Woods system

8 The FLOAT and the Golden Rule By March 1976, the world’s major currencies were floating — in other words, the currency exchange rates no longer were governments' principal means of administering monetary policy.floatingmonetary policy NO CENTRAL MARKET! No Real Regulations This is what I like to call the age of the Golden Rule.

9 Math Problem A client has a problem.

10 How did $1,000,000 turn $950,000? How did $1,000,000 turn into $950,000? US

11 Problem Investigation What Happened? Fluctuations Let me asking the Dealing room Pssst....Tell him it was Risk Management I dont know that was our quote

12 Bank DeliveryBank Currency Delivery Each Layer has it’s own pricing and Agenda Typical Currency Delivery

13 What aspect of the commodity are we talking about? The Point of Conversion (POC) Modifies the Value POC Refinery report + There is an economic cost at the point of conversion in currency. It is neither transparent nor quantified

14 What aspect of the commodity are we talking about? POC IMS IMS refinery To Capture the MOST VALUE you need the most correct information receipt + There is an economic cost at the point of conversion in currency. It is neither transparent nor quantified

15 Crucial for Your Agenda -Timing -Delivery Price -Principals Offset Price Re-Characterizing the Transaction for your Agenda

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17 IMS Trust in Transparency It is Possible that the Golden Rule be Your Rule Trust in Transparency


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