HSBC said reviewing forex trades after arrest

HSBC corner branch

HSBC is reviewing a past investigation of forex trades after the arrest on Tuesday night of a senior manager in New York for alleged fraud, according to a source familiar with the matter.

Reuters reports that HSBC examined the trades done by Mark Johnson, its global head of foreign exchange cash trading, in 2013 as part of a broader internal probe and found no irregularities, the source said.

Johnson was on Wednesday charged in a criminal complaint filed in a federal court in Brooklyn with engaging in a scheme to front-run a $3.5bn transaction by one of the bank's clients, alongside former HSBC executive Stuart Scott. Both men were charged with wire fraud conspiracy.

On Wednesday the bank said it was co-operating with the Department of Justice's (DoJ) investigation.

In its statement, the DoJ did not name the client the pair allegedly defrauded, but a different source familiar with the situation said the trades involved British oil firm Cairn Energy.

To access the complete Reuters article hit the link below:

HSBC reviewing 2013 forex probe after trader's arrest - source

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