As the court hearing of Perry Stimpson proceeds, new allegations of currency manipulation at the upper echelons of Citigroup are coming to light.

Stimpson, the first of four Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term traders who have filed court cases for unfair dismissal in the wake of the FX fixing scandal, told the East London Employment Tribunal that two senior bankers intentionally manipulated the sterling rate in advance of a big M&A transaction, effectively putting the illicit profits of the bank ahead of the interests of its clients, according to Reuters.

The client M&A deal in question took place in 2010. The deal reportedly had a significant foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term element. Acting on insider information, both Jeff Feig, who was global head of trading at the time, and Anil Prasad, who was head of foreign exchange, are accused of buying up cash and options to push up the value of the sterling, allowing the bank to net a $35 million profit on the M&A transaction.

Prasad and Feig, both of whom resigned in early 2014 before the allegations were made against them, have emphatically denied the charges.

Citigroup's lawyer Diya Sen Gupta told the court on Thursday: "The allegations were investigated and are not, and were not, substantiated."

Above the Law?

However, the episode highlights a potential disparity between how senior staff, many of whom have avoided persecution, and others were treated in the wake of the FX rigging scandal. Indeed, immediately following the eruption of the scandal, a number of big banks began sacking employees on a massive scale.

The episode highlights a potential disparity between how senior staff, many of whom have avoided persecution, and others were treated in the wake of the FX rigging scandal.

Stimpson pointed out that the example of Prasad and Feig highlights how he, alongside others, has been singled out for breaches of the bank's code when senior staff have not been. As such, he seems intent on exposing that banks have not been thorough in their assessment of the role of their employees in the FX fixing scandal. Indeed, Stimpson said insider discussions in online chat rooms were "endemic" in the industry, and ignored by senior management.

If that is the case, the banks may have more penalties to face in the future, in addition to the already huge fines levelled against them by regulators. Citigroup has already been fined $2.3 billion by U.S. and U.K. regulators, which makes it the second most penalised bank after Barclays.

The bank denies such accusations. Citigroup said all the allegations of misconduct have been forwarded to its compliance department, and that disciplinary action would be taken against any employee should allegations of misconduct be proven true.