Cameron promises crackdown as gilt traders exploit QE

Prime Minister David Cameron has warned that bankers caught manipulating the market to take advantage of QE can expect to face criminal prosecution.

According to reports, the Bank of England has already reprimanded one commercial bank which sought to push prices higher by purchasing gilts ahead of an auction and then selling them back to the Bank at a profit. The issue was raised in the House of Commons on Tuesday by Labour MP John McDonnell (Hayes and Harlington) during Prime Minister's Questions, the Mail reports. He asked Cameron: “There was a report a week ago that the Bank of England has reprimanded one commercial bank - and there may be others - who have tried to manipulate the gilt market to exploit quantitative easing. ...