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US Slaps $175 mn Fine on HSBC for Lax Forex Oversight
October 05, 2017
US central bank has imposed a fine of $175 million on one of the biggest banking players HSBC for not overseeing foreign exchange traders who exploited confidential client information and conspired with the traders of competing banks.
According to the Federal Reserve, HSBC failed to identify misconduct by senior traders, including its foreign exchange cash trading senior head during 2008 and 2013. These traders used “inside information” for their vested interests.
Apart from penalty imposition, the Fed has also directed HSBC to improve its oversight measures.
