The Federal Reserve Board on Friday announced that it is seeking to permanently bar Peter Little, the former head of the foreign exchange (FX) spot desk at Barclays Bank in New York, from employment in the banking industry and to impose a $487,500 fine on him.
Little is alleged to have engaged in unsafe and unsound practices by using electronic chat rooms to coordinate with traders at competitor banks to influence FX pricing benchmarks and by engaging in manipulative trading. Little is also alleged to have failed to adequately supervise subordinate traders at Barclays who coordinated with and disclosed confidential information to competitors on Little's behalf.
The enforcement proceedings follow the Board's actions prohibiting former Barclays FX traders Christopher Ashton and Michael Weston from employment in the banking industry, as well as the Board's May 2015 enforcement action against Barclays for unsafe and unsound practices in its FX market practices. The action against Barclays required the firm to pay a $342 million civil money penalty and to engage in extensive remediation.
Bloomberg News: 'Mr. Little will fight and prevail against the Federal Reserve’s baseless allegations', Michael Watsula, a lawyer representing Little, said in an emailed statement. 'The Federal Reserve denied Mr. Little any meaningful opportunity to explain the fundamental error of its theories before it sullied his good name with these charges'.
Little can request a hearing within 20 days to challenge the sanctions.