Date
28 July 2017
BNP Paribas failed to prevent its traders from using electronic chatrooms to collude with rivals to manipulate prices and benchmark rates, the Federal Reserve said. Photo: Reuters
BNP Paribas failed to prevent its traders from using electronic chatrooms to collude with rivals to manipulate prices and benchmark rates, the Federal Reserve said. Photo: Reuters

Fed fines BNP Paribas US$246 mln over currency manipulation

The French bank BNP Paribas SA agreed to pay US$246 million to the US Federal Reserve to settle accusations of misconduct in its foreign-exchange business, the Wall Street Journal reports.

The French bank failed to prevent its traders from using electronic chatrooms to collude with rivals to manipulate prices and benchmark rates, the Fed said in a statement on Monday.

It ordered BNP Paribas to improve its senior management oversight and controls relating to the firm’s foreign-exchange trading.

BNP Paribas said it “deeply regrets the past misconduct which was a clear breach of the high standards on which the group operates”.  

The bank also agreed to a US$350 million settlement in May with New York’s state banking regulator over the deficiencies. The misconduct took place between 2007 and 2013, it said.

The bank said it has improved its systems of control by increasing resources and staff dedicated to compliance, conducting staff training and launching a new code of conduct that applies to all staff, the newspaper said.

Several other global banks, including Barclays Plc, Citigroup Inc. and J.P. Morgan Chase & Co., have together paid billions of dollars in fines in recent years after being accused of wrongdoing in currency markets.

In January, the Fed banned former BNP Paribas trader Jason Katz from working in the US banking industry after he admitted conspiring to fix prices in the foreign-exchange market.

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RC/CG

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