Fed investigating bank conduct in forex markets

Wed Nov 12, 2014 8:13am EST
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WASHINGTON (Reuters) - The U.S. Federal Reserve is investigating possible improper conduct in foreign exchange markets by large banking institutions, a spokesman said on Wednesday.

"The Federal Reserve is continuing to investigate in the foreign exchange markets in coordination with other authorities, including the Department of Justice,” the spokesman said in a statement.

The Fed also is working closely with authorities overseas, according to the statement.

The announcement was made as global regulators fined five major banks, including UBS UBSN.VX, HSBC (HSBA.L: Quote) and Citigroup (C.N: Quote), $3.4 billion for failing to stop their traders from trying to manipulate the foreign exchange market.

(Writing by Doina Chiacu; Editing by Bill Trott)

A detail from the front of the United States Federal Reserve Board building is shown in Washington October 28, 2014.  REUTERS/Gary Cameron