Deutsche Bank suspends several traders
Investigation into the suspected manipulation of the foreign exchange market
The suspended traders are understood to have been working in Deutsche’s New York office and other locations in the Americas. They were put on leave at the end of last year. Photograph: Adam Berry/Bloomberg
Deutsche Bank has suspended several traders as part of an internal investigation into the suspected manipulation of the foreign exchange market.
The lender took action after examining emails and communications amid a global probe into possible manipulation and collusion in the $5.3 trillion currency market that has seen traders across the world’s largest banks fired or suspended.
The suspended traders are understood to have been working in Deutsche’s New York office and other locations in the Americas. They were put on leave at the end of last year.
In a sign that the suspected market manipulation is not limited to major currencies, at least one suspended trader at Deutsche was responsible for trading the Argentine peso, according to a report in German newspaper Die Welt.
Deutsche confirmed that it was co-operating with requests from regulatory authorities to investigate foreign exchange trading and that the bank “will take disciplinary action with regards to individuals if merited”.
At least 13 traders at global banks have been suspended in what have so far been internal reviews at the banks ordered by the regulators. None of the traders has been accused of wrongdoing and no charges have been brought by authorities.
Last week, Citigroup confirmed that it had fired one of its top foreign exchange traders, Rohan Ramchandani, who had previously been put on leave during the bank’s investigation. Mr Ramchandani could not be reached for comment.
Lawyers have said it remained unclear whether some of the alleged activities taking place in the foreign exchange market – such as front-running or “pre-hedging” orders to buy or sell currencies – qualify as criminal, misconduct or are an offence at all. – (Copyright The Financial Times Limited 2014)