Citigroup executives encouraged foreign-exchange traders to use electronic chat rooms to share client orders with employees of rival banks, a practice that forced finance companies to pay $10bn in regulatory fines, according to evidence presented to a London employment tribunal.
Bloomberg News reports that Carly McWilliams, a London-based trader fired during a probe into the currency-rigging scandal, said executives were aware of how the foreign-exchange desk operated long before the scandal attracted the attention of regulators, according to evidence read in court on the first day of her employment suit. Jerome Kemp, the Citigroup executive who fired McWilliams, denied the claim in court Tuesday.
"The bank has encouraged precisely what it now complains of," McWilliams said in an e-mail to the bank’s HR department before her disciplinary hearing on May 7, 2014.
McWilliams is one of several traders to sue their former employers in London’s employment tribunals in recent months, after banks suspended dozens of people who were subject to regulatory probes.
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