LONDON Feb 4 Lloyds Banking Group has
suspended one of its foreign exchange traders after an internal
investigation into allegations of currency manipulation, a
source familiar with the matter said on Tuesday.
The suspension of Martin Chantree marks the first time the
partly state-owned British bank has been linked with alleged
currency manipulation, although the source said he had not been
accused of any wrongdoing.
Allegations of manipulation in forex rates are the subject
of investigations by authorities around the world, dragging in
many of the world's biggest banks and currency market
participants, including UBS, Deutsche Bank,
JP Morgan and Citigroup, where traders have either
been suspended, put on leave or fired.
Lloyds declined to comment and Chantree couldn't immediately
be reached for comment.
Last year, Britain's Financial Conduct Authority began a
formal investigation into possible manipulation in the $5.3
trillion-a-day global FX market. The U.S. Justice Department is
also engaged in an investigation of possible manipulation of the
market, the world's largest.
Benchmark foreign exchange rates, often referred to as
fixes, are a cornerstone of global financial markets, used to
price trillions of dollars worth of investments and deals and
relied upon by companies, investors and central banks.
Earlier on Tuesday, FCA chief executive Martin Wheatley said
its investigations were unlikely to yield any results this year.