Federal Reserve Bans Two HSBC Bankers over FX Fraud Charges
- Johnson and Scott are the first ‘real’ people to be charged with the alleged rigging of the forex market.
A couple of senior HSBC bankers have been barred by the Federal Reserve Board from entering the banking industry as they were charged with fraudulently rigging a multibillion-dollar 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 transaction.
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Mark Johnson, HSBC’s global head of FX cash trading, and his colleague Stuart Scott, head of 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 trading in Europe, the Middle East and Africa, are accused of defrauding an FX client of HSBC. They are alleged to have corruptly manipulated a large pre-arranged currency transaction to benefit themselves and their bank. More specifically, the two allegedly conspired to take advantage of inside information, making $3 million profit by fraudulently trading currencies in advance of a client buying $3.4 billion of pounds sterling in 2011.
According to the complaint, the Fed board found that: “Given the indictment, Johnson's and Scott's continued participation in any depository institution may threaten to impair public confidence in that institution. The prohibition is effective until the criminal charges against Johnson and Scott are resolved or disposed of.”
Johnson and Scott are the first ‘real’ people to be charged in connection with the watchdog's long-running investigation into bankers’ alleged rigging of the forex market.
Last year, four banks - Barclays, Royal Bank of Scotland, Citigroup and JP Morgan Chase - pleaded guilty to conspiracy to rig the forex market and fines totalling $5.6 billion were handed down. HSBC was not included in the settlement deal. However, the UK-based bank has incurred almost $13 billion in legal bills and fines over the past five years.
A couple of senior HSBC bankers have been barred by the Federal Reserve Board from entering the banking industry as they were charged with fraudulently rigging a multibillion-dollar 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 transaction.
The FM London Summit is almost here. Register today!
Mark Johnson, HSBC’s global head of FX cash trading, and his colleague Stuart Scott, head of 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 trading in Europe, the Middle East and Africa, are accused of defrauding an FX client of HSBC. They are alleged to have corruptly manipulated a large pre-arranged currency transaction to benefit themselves and their bank. More specifically, the two allegedly conspired to take advantage of inside information, making $3 million profit by fraudulently trading currencies in advance of a client buying $3.4 billion of pounds sterling in 2011.
According to the complaint, the Fed board found that: “Given the indictment, Johnson's and Scott's continued participation in any depository institution may threaten to impair public confidence in that institution. The prohibition is effective until the criminal charges against Johnson and Scott are resolved or disposed of.”
Johnson and Scott are the first ‘real’ people to be charged in connection with the watchdog's long-running investigation into bankers’ alleged rigging of the forex market.
Last year, four banks - Barclays, Royal Bank of Scotland, Citigroup and JP Morgan Chase - pleaded guilty to conspiracy to rig the forex market and fines totalling $5.6 billion were handed down. HSBC was not included in the settlement deal. However, the UK-based bank has incurred almost $13 billion in legal bills and fines over the past five years.