New York’s banking regulator is pressing to put monitors in place at Deutsche Bank and Barclays as part of an investigation into whether traders manipulated benchmark currency rates, a person briefed on the matter said.
Bloomberg News reports that Benjamin Lawsky, superintendent of New York’s Department of Financial Services, contacted lawyers for the banks about his plan following an initial review of the possible manipulation, said the person, who asked not to be named because the investigation isn’t public.
Regulators and prosecutors in Europe, the U.K. and U.S. are investigating allegations that dealers at the world’s biggest banks traded ahead of their clients and colluded to rig the WM/Reuters rate, a benchmark that pension funds and money managers use to determine what they pay for foreign currencies. More than 25 traders have been fired, suspended or put on leave after the allegations emerged last year.
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