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U.S. fines BNP Paribas $246m over forex oversight

Staff Writer |
U.S. regulators have fined BNP Paribas $246m (€213m) for poor oversight of its foreign exchange traders who manipulated trading prices.

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The move comes six months after the Federal Reserve permanently barred former BNP trader Jason Katz from the banking industry, for manipulating foreign exchange prices.

"The firm failed to detect and address that its traders used electronic chat rooms to communicate with competitors about their trading positions," the Fed said in a statement.

"The Board's order requires BNP Paribas to improve its senior management oversight and controls relating to the firm's FX trading," the statement said.

BNP said the misconduct occurred between 2007 and 2013 the company has taken steps to strengthen oversight.

"BNP Paribas deeply regrets the past misconduct which was a clear breach of the high standards on which the Group operates," the company said in a statement.

The Fed also blocked BNP from ever re-hiring any of the former employees involved the incidents, the central bank said.

New York State's Department of Financial Services in May fined BNP $350m for the same case, accusing traders of "collusive activity" to manipulate currency prices.

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