Citi shared central bank info with clients: ex trader

Thu Sep 10, 2015 5:34pm EDT
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By Jamie McGeever

LONDON (Reuters) - Citigroup sent details of its central bank customers' trading activity to another client and handed out details of its foreign exchange order book to customers in electronic chatrooms, a former foreign exchange trader said in a witness statement to a London court on Thursday.

Perry Stimpson, a former Citigroup currency trader who is claiming unfair dismissal, said the practices, which breached client confidentiality, were well known by senior managers.

"Our Investor Desk would comply with a weekly request from (a client) for details of Central Bank activity that Citi had transacted," Stimpson said in his witness statement to an employment tribunal in London. Stimpson did not specify which central banks he was referring to.

He said Jeff Feig, who was Citi's global head of trading at the time, called a halt to sending round the "central bank survey", as Stimpson said it was referred to, in mid-2013 because he decided it was wrong. He did not elaborate.

Feig was not immediately available for comment.

"Another common practice on the Investor Desk was to cut and paste details of Citibank's order book on to Bloomberg chats at the request of customers," Stimpson said in his statement.

A Citi spokesman said: "All of the allegations of wrongdoing being made by Mr Stimpson have been investigated and were found to be without merit."Citi has said Stimpson was dismissed for serious breaches of contract, alleging he shared confidential client information with traders at other banks via electronic chatrooms.

He was dismissed last November in the wake of an industry scandal that resulted in banks paying more than $10 billion in fines for failing to stop traders attempting to manipulate the $5 trillion-a-day forex market.   Continued...

The Citibank logo is pictured at its Nicaragua headquarters in Managua October 16, 2014.  REUTERS/Oswaldo Rivas