HSBC, Deutsche Bank pay penalties for FX rate manipulation

Section:

From Zacks Equity Research
via Nasdaq.com
Monday, October 2, 2017

Two major foreign banks, HSBC Holdings plc HSBC and Deutsche Bank AG DB , resolved legacy business misconduct matters in the United States. The banks were accused of rigging foreign exchange (FX) rates.

HSBC was fined $175 million for its "unsafe and unsound practices in its foreign exchange trading business" by the Federal Reserve. The bank was accused of failure of oversight and internal control of its FX traders who buy/sell currencies "for the firm's own accounts and for customers."

... Dispatch continues below ...



ADVERTISEMENT

USAGold: Coins and bullion since 1973


USAGold, well known for its Internet site, USAGold.com, offers contemporary bullion coins and bullion-related historic gold coins for delivery to private investors in the United States, Europe, Canada, Australia, and New Zealand. It is one of the oldest and most respected names in the gold industry, with thousands of clients and an approach to investment that emphasizes guidance and individual needs over high-pressure sales tactics. The firm's zero-complaint record at the Better Business Bureau makes it an ideal match for the conservative, long-term investor looking for a reliable contact in the gold business.

Please call 1-800-869-5115x100 and ask for the trading desk, or visit:

http://www.USAGold.com

USAGold: Great prices, quick delivery -- all the time.



The banking regulator alleged that the bank's dealers shared confidential information about client orders and matched up trades to benefit them. The bank was also accused of attempting to manipulate FX rates.

HSBC is now required to improve control and fix shortfalls in "governance, risk management, compliance, and audit policies" pertaining to its FX trading operations. Company spokesman Rob Sherman said, "We are pleased to have resolved this matter related to practices in the FX market from 2008-2013."

In a separate litigation, Deutsche Bank agreed to resolve a class-action lawsuit by customers that alleged it of rigging FX rates. The bank will be paying $190 million as penalty. ...

... For the remainder of the report:

http://www.nasdaq.com/article/hsbc-deutsche-bank-pay-penalty-for-fx-rate...

* * *

Join GATA here:

New Orleans Investment Conference
Wednesday-Saturday, October 25-28, 2017
Hilton New Orleans Riverside Hotel, New Orleans, Louisiana
http://neworleansconference.com/wp-content/uploads/2017/07/NOIC2017_powe...

Mines and Money London
Business Design Centre
London, England, United Kingdom
Monday-Thursday, November 27-30, 2017
http://london.minesandmoney.com/

* * *

Help keep GATA going:

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16