First banker arrested over forex scandal
A former RBS trader has become the first UK banker to be arrested on suspicion of rigging the £3.5trillion a day foreign exchange market.
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An SFO spokesman said:
“In connection with a Serious Fraud Office investigation, we can confirm one man was arrested in Billericay on December 19. Officers from the City of London Police assisted with the operation.”
Last month the Financial Conduct Authority imposed record fines totalling £1.1bn on five banks over the forex failings.
Five banks were tackled - Citibank N.A. (fined £225,575,000), HSBC (fined £216,363,000), JPMorgan Chase Bank N.A.(fined £222,166,000), Royal Bank of Scotland (fined £217,000,000) and UBS AG (fined £233,814,000).
The regulator stressed that the G10 spot FX market is a 'systemically important' financial market and that their actions took into account the fact that these banks had undermined confidence in the UK financial system and put its integrity at risk.
Ineffective controls at the Banks allowed G10 spot FX traders to put their banks’ interests ahead of those of their clients, other market participants and the wider UK financial system. The banks 'failed to manage obvious risks around confidentiality, conflicts of interest and trading conduct'.
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