HSBC Official Charged with FX Rigging
Mark Johnson, HSBC’s global head of foreign exchange cash trading in London, was held in a Brooklyn jail overnight for an alleged front-running scheme involving a $3.5 billion currency transaction. Johnson, who works in London and New York was quickly arrested because of extradition concerns.
"About 40% of the world's currency dealing is estimated to go through trading rooms in London."
"Johnson’s arrest comes more than a year after five global banks pleaded guilty to charges related to the rigging of currency benchmarks. HSBC, though it settled regulatory cases, is still being investigated by the Justice Department. The bank has set aside $1.3 billion for possible settlements, according to an August filing."
A former UBS trader was also under similar charges
"Separately on Tuesday, the U.S. Federal Reserve banned former UBS Group AG trader Matthew Gardiner from the banking industry for life for his role rigging currency benchmarks. Gardiner used electronic chat rooms, with names including The Cartel and The Mafia, to facilitate the rigging of foreign-exchange benchmarks and to disclose confidential customer information to traders at other banks, the Fed said in a statement Tuesday. That matter is separate from the one involving Johnson, the people said."
However, Gardiner hasn't been charged with anything due to his cooperation with law officials to build currency-rigging cases against individuals for violation of antitrust laws.
