Wednesday, November 13, 2019
Home > Economy > Forex rigging ‘as serious as’ Libor scandal: Carney

Forex rigging ‘as serious as’ Libor scandal: Carney

LONDON: The alleged manipulation of foreign exchange markets is “as serious as” the Libor rate rigging scandal that rocked the financial sector, Bank of England governor Mark Carney said.
“This is extremely serious… this is as serious as Libor, if not more so,” Carney told a panel of British lawmakers amid the forex investigation.
Canadian national Carney was grilled over the case after the Bank of England (BoE) recently said it had suspended a worker following a review of its processes triggered by a probe into the suspected forex rigging.
At the time, the BoE said that it had found no evidence that staff colluded in the alleged manipulation of the forex trades, 40 percent of which are conducted in London.
Global regulators are investigating a number of firms linked to the suspected rigging of foreign exchange trading.
The probe comes on the heels of the Libor interbank interest rate-rigging scandal of 2012 that triggered heavy fines for major international banks and a boardroom shake-up at British banking giant Barclays.
Barclays, HSBC and Royal Bank of Scotland have all confirmed that they are part of the ongoing forex market investigations.
Deutsche Bank, Swiss lender UBS and US pair Citi and JPMorgan Chase have also revealed that they are co-operating with regulators over the affair.
Some lenders have meanwhile suspended and fired traders while investigations continue.