Thursday, January 30, 2014

A Third WM Reuters Fix Class Action Suit Filed; Deutsche Suspends Head of Emerging Markets FX Trader in NY


Courthouse News Services reports that a class action suit was filed by Five Star Forex alleging that Barclays, BNP Paribas, CitiBank and Credit Suisse conspired to fix the foreign currency exchange market through the manipulation of WM/Reuters Rates bought and sold in the US since 2003. The suit was filed in USDC Southern District of New York.  There have been at least two previous class action lawsuits filed, by A Haverhill, a Massachusetts pension fund and Simmtech, a South Korean corporation.

It was also reported today that Deutsche suspended this senior trader in mid-December.

The stories continue, but at this point neither of these sheds any more light on what actually happened. The filing of lawsuits is understandable, and possibly encouraged by the banks continued suspension and firing of employees related to internal bank investigations of the fix allegations.

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