The U.S. Federal Reserve fined HSBC Holdings PLC $175 million on Friday for “unsafe and unsound practices” in its foreign exchange trading business, the latest in a series of fines for banks that fail to prevent market manipulation.
Reuters reports that HSBC failed to monitor chat rooms where traders swapped information about investment positions, the U.S. central bank said, echoing findings by other regulators investigating the $5 trillion-a-day foreign exchange or FX market.
“The board levied the fine for deficiencies in HSBC’s oversight of and internal controls over FX traders,” the Fed said in a statement.
The Fed’s enforcement action also requires HSBC to improve its controls and compliance risk management concerning the firm’s FX trading, the Fed said.
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