Bank of America suspends senior FX trader in London: source

Thu Mar 6, 2014 12:35pm EST
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

By Jamie McGeever

LONDON (Reuters) - The worldwide investigation into allegations of manipulation in the global currency market took another twist on Thursday, as Bank of America suspended a senior trader in London, a source familiar with the matter said on Thursday.

Bank of America-Merrill Lynch, the investment banking arm of the second largest U.S. lender, suspended Joseph Landes, head of spot trading for Europe, Middle East and Africa, as the bank carries out its investigations.

Landes couldn't be reached immediately and Bank of America declined to comment.

It adds Bank of America's name to the growing list of big banks including Citi, JP Morgan Chase, Barclays and UBS who have put on leave, suspended or fired more than 20 traders since the middle of last year.

The Bank of England on Wednesday suspended an employee as part of an internal probe into what Bank officials knew about alleged manipulation of key currency rates by traders.

The BoE also released on Wednesday minutes of meetings between its FX officials and chief dealers in London stretching back over several years that showed concerns over possible manipulation were raised as far back as 2006.

Regulators have said the alleged manipulation of the $5.3 trillion-a-day market - by far the world's largest financial market - is as bad as the Libor interest rate rigging which has resulted in banks shelling out $6 billion in fines and settlements and criminal cases against some individuals.

"This is Libor revisited, this is going to run and run. And remember, we're still dealing with Libor," said Mark Garnier, Conservative member of parliament and member of the Treasury Select Committee (TSC).   Continued...

Customers are seen outside of a Bank of America in Tucson, Arizona January 21, 2011. REUTERS/Joshua Lott