The HSBC executive arrested Tuesday for alleged frontrunning was about to move to the U.S. to take up a broader position in the firm’s trading division, according to people familiar with the matter.
Bloomberg News reports that the arrest of Mark Johnson, 50, came as a surprise to the bank, which had already probed the $3.5bn deal at the center of the controversy and found nothing improper, said the people, who asked not to be identified because the details are not public. He was to become head of the bank’s foreign exchange and commodities business for the Americas, the people said.
Johnson was arrested by U.S. federal agents as he prepared to fly out of New York’s Kennedy airport on Tuesday and charged with manipulating the pound exchange rate to take advantage of inside information he had gleaned about a client transaction. HSBC learned about his arrest from the media, and Johnson remains an employee, the people said.
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