German watchdog pulls more banks into forex probe

FRANKFURT Tue May 20, 2014 7:30am EDT

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FRANKFURT May 20 (Reuters) - German market watchdog Bafin said on Tuesday it had requested that many German banks conduct their own internal investigations as part of an ongoing probe into possible manipulation of reference currency rates.

But there was no evidence so far that would point to a pattern of senior bank managers directing more junior staff to act improperly, Bafin's head of banking supervision Raimund Roeseler said on the sidelines of a news conference on Tuesday.

Deutsche Bank, Germany's largest bank and the world's largest forex trader, is the country's only bank known up to now to be involved in the currency probe. The bank has said that it is conducting its own internal probe and that it is cooperating with authorities.

Roeseler said attempts to manipulate forex rates involved Asian as well as Latin American currencies. Other, smaller-sized currency markets could not be ruled out as possible targets, he said. (Reporting by Thomas Atkins; Editing by Jonathan Gould)

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