In the DOJ's first charges against individuals in the FX market investigations of the last three years, HSBC's head of FX trading and a former colleague were charged with using inside information from a large forthcoming client trade to make an $8 million profit for the bank (and we assume thereby increasing their bonuses).
While many charges have been made and settled with the banks, here individuals are being charged, perhaps in response to claims that just as in the financial crisis, fines are levied but no individuals are held responsible. Earlier this week the Fed barred a UBS trader from the currency markets for life, due to participation in the FX currency benchmark rigging scandal. There may be a few more charges to come both in the US and Europe, for regulators to show that more than financial penalties against the banks will be levied in this and any future financial scandals.
Promotion of Ethics, Simplicity and Transparency in Finance
Showing posts with label HSBC. Show all posts
Showing posts with label HSBC. Show all posts
Thursday, July 21, 2016
Thursday, January 23, 2014
More FX manipulation lawsuits to come?
Based on media reports there are currently two class actions against the major banks regarding the alleged manipulation of the FX market, filed by Haverhill Retirement System and Simmtech Co. Ltd. Given the steady reporting of additional details of investigations and suspensions and firing of traders at the top banks, the question probably isn't whether more lawsuits will be filed but when and how soon.
Tuesday, January 21, 2014
Could more regulation be on the way for the FX market?
With banks either firing or placing traders on leave, one has to wonder whether a result of the investigations into the alleged FX manipulation will result in more regulation. http://dealbook.nytimes.com/2014/01/17/hsbc-and-citigroup-suspend-currency-traders/?_php=true&_type=blogs&nl=business&emc=edit_dlbkam_20140121&_r=0
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