The US Federal Bureau of Investigation has arrested the head of global foreign exchange trading department at HSBC Mark Johnson, before leaving New York. He is accused of fraud in currency trading. It is reported by Bloomberg.
Mark Johnson was the first person arrested in the three-year investigation of fraud when trading currencies. He is accused of committing outpacing deals – illegal exchange practice in which the dealer has information about the upcoming large-scale operations, which affect the rate of advance a deal to make a profit from the price changes
Johnson is not the first celebrity manager. HSBC, against whom a criminal investigation is conducted. Stuart Scott – director of foreign exchange trading department in Europe, is also under investigation. Apart from these, about two dozen traders were barred from office because of the investigation.
Johnson’s arrest occurred after a five year ago, global banks have pleaded guilty to fraud in the quote currency. Then, HSBC did not fall under criminal investigation, but agreed to pay $ 618 million fine the US and UK authorities to settle charges of currency manipulation.
The US Department of Justice has often been criticized for failing to involve the bankers responsible. However, Bloomberg sources claim that the charges against Johnson can be put forward this summer.
On Tuesday 19 July the Federal Reserve issued a lifetime ban to hold positions in the banks former UBS trader Matthew Gardiner. He is accused of using chat-rooms in the terminals in advance to agree on the quotations of currencies and thus to manipulate the sales. He was also accused of disclosing confidential client information to traders from other banks. Gardiner in chat rooms using the names “Cartel” and “Mafia».
US Attorney Gardiner has not put forward against the charges, as it helps the authorities to investigate.
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