Ft forex scandal
US Department of Justice staff have flown to the UK in recent weeks to interview foreign exchange traders, ft forex scandal have been offered partial immunity in exchange for volunteering information about superiors, people familiar with the situation said. 3tn a day currency market by at least 15 regulators and prosecutors. They are investigating allegations that bank traders and sales staff used chat rooms and other means of communication to share client information and manipulate daily currency benchmarks.
Most authorities initially gave banks free rein to conduct their own probes, prompting the suspension, placing on leave or firing of so far almost three dozen staff at 10 banks and the Bank of England, where one official has been suspended. One senior lawyer said the DoJ probe was well-advanced. Roger Böhler, chief dealer at UBS in Connecticut, has been the latest senior trader to leave his employer in recent weeks, people close to the situation said. The reasons for his departure are not known. Mr Böhler could not be reached for comment while UBS declined to comment. It is already clear from some banks’ internal investigations that there have been instances of traders sharing information about overall trading books, individual client orders and the spreads they are charging, several people close to the situation have said. Germany’s financial regulator and Switzerland’s competition commission have confirmed publicly in recent months that they have found evidence of wrongdoing.
The scandal has also spurred a political and regulatory push to reform the so far mostly unpoliced currency market. Minouche Shafik, the incoming Bank of England deputy governor, said at a parliamentary hearing last week that one of the main questions that needed to be asked about benchmarks was whether current voluntary codes governing the markets were sufficient. There is sufficient reason to think there are serious problems and the current practices are not adequate. Copyright The Financial Times Limited 2017.
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Financial Times’ are trademarks of The Financial Times Ltd. 3tn a day forex market, in what they hope will draw a line under one of the biggest cases of misconduct in banking since the global financial crisis. Mark Taylor, Dean of Warwick Business School, who sits on the Academic Advisory Group of the Bank of England’s Fair and Effective Markets Review. The revelation that traders colluded to move around currency exchange rates was particularly embarrassing for the banks because it occurred after they had paid billions of dollars to settle claims that their traders had tried to rig interbank lending rates. It has raised questions as to whether the industry learnt any lessons from the previous scandal.