HONOLULU (HawaiiNewsNow) - Dark pools are private exchanges. In them, hotshot speculators make trades you can't see, using information you don't have. The top two banks doing dark pools are Barclays Capital and Credit Suisse.
They'll pay $154 million to settle charges of lies and omissions in selling these services. According to the New York state attorney general, Barclays admits misleading investors. Barclays said it monitoring its dark pools for high-speed predatory trading and ran weekly surveillance report, but it didn't. Credit Suisse said it used objective measures to spot opportunistic trading but didn't.
So both banks lied to customers.
Another example of the difference between small community banks and megabanks whose top people will do seemingly anything to get ever-larger bonuses.