Wednesday 5 February 2014

The day of firing New York FX Traders on Wall Street

hello Traders,

Deutsche Bank, Citigroup and Goldman Sachs are those banks that today has fired FX traders. Deutsche Bank has fired three currency traders in New York. Citigroup and Goldman Sachs have lost senior executives in their foreign exchange businesses as regulators worldwide ramp up their investigations into potential manipulation of the $5-trillion-a-day foreign exchange market, according to a person briefed on the matter.

The three employees Diego Moraiz, Robert Wallden and Christopher Fahy include the head of Deutsche Bank’s emerging markets foreign exchange trading desk in New York and two traders, said the person, who was not authorized to discuss the matter publicly.

The terminations come as authorities around the world, including Britain's Financial Conduct Authority and the U.S. Justice Department, investigate possible manipulation in the $5.3 trillion-a-day global forex market.

Moraiz, who had been with Deutsche Bank since 2004 and is close to 50, was the head of its emerging markets foreign exchange trading desk and specialized in trading the Mexican peso. He was a managing director, and the most senior of the three traders to be terminated on Tuesday.

Anil Prasad, who has served as global head of Citigroup’s foreign exchange and local markets operations since 2008.

Steven Cho, global head of the Group of 10 nations spot and forward trading at Goldman Sachs in New York. Cho joined Goldman Sachs in 1996 in London and later relocated to New York. He has been a partner at the bank since 2010.

In the last two years, banks have combined to pay more than $5 billion in fines related to manipulation of the London interbank offered rate, or Libor, and other benchmark interest rates.

At least 10 people in Britain and the United States are facing criminal charges related to Libor. The first criminal case in Britain is expected to go to trial next year.

Regulators in Britain, the United States, Germany, Switzerland and Hong Kong have started investigations into the currency markets in the last year, all of which are in the early stages.

More than a dozen foreign exchange traders at some of the world’s largest banks, including Barclays, UBS and JPMorgan Chase, have been placed on leave over questions about whether they colluded to manipulate benchmark currency rates.

This week, the Lloyds Banking Group placed a senior currency trader on leave as part of its own internal investigation, according to people briefed on the matter.

In January, Citigroup fired the head of its European spot currency trading desk after he was placed on leave last year.

"nature, does not like a vacuum"
regards,
oscarjp

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