BNP Paribas faces $246m fine in currency scandal

Cornelia Mascio
Luglio 18, 2017

The board said: "the bank had insufficient oversight and controls over its FX traders, who allegedly discussed trading positions with competitors, using electronic chatrooms".

The Fed also blocked BNP from ever re-hiring any of the former employees involved the incidents, the central bank said.

Cases against traders are ongoing. It had resulted in billions in fines levied by various regulators related to manipulation of currency markets.

BNP Paribas said in a statement that it "deeply regrets the past misconduct which was a clear breach of the high standards on which the Group operates".

The move came six months after the Federal Reserve permanently barred former BNP trader Jason Katz from the banking industry, for manipulating foreign exchange prices.

The fine also follows the Fed decision in April to fine Germany's Deutsche Bank more than $150 million for similar "unsafe and unsound" foreign exchange trading practices.

The fine marks the latest action taken by the US central bank as part of a long-running crackdown on price-fixing across foreign exchange markets, in which several banks have already pleaded guilty to conspiring to manipulate currency prices.

In March 2016 the UK's Serious Fraud Office (SFO) closed its criminal investigation into allegations of price-rigging in the foreign exchange market.

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