Bankers could be in line for grilling over forex rigging scandal

Minouche Shafik, photographed by Simon Hulme
Minouche Shafik, photographed by Simon Hulme
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BANK EXECUTIVES and regulators could be in line for public grillings following last week’s landmark international settlement over allegations of manipulation and collusion in the £3 trillion-per-day foreign exchange market.

Regulators led a global investigation after whistleblowers raised concerns about misconduct in the forex market, resulting in six of the world’s largest banks being fined a total of £2.75bn.

But questions have been asked about how the Financial Conduct Authority ran the inquiry and what level of penalty, if any, can change the culture in financial markets.

The Treasury Select Committee will decide this week whether to schedule hearings on the forex scandal, political sources said.

The influential parliamentary committee could use Wednesday’s hearing into a Bank of England-led “Fair and Effective Markets” review, aimed at raising standards of conduct in wholesale financial markets, as a precursor to further hearings on the forex market.

Minouche Shafik, Deputy Governor of the Bank of England, is due to give evidence in the first session. Her evidence will be closely watched after the Bank on Wednesday fired its chief foreign exchange dealer after an inquiry criticised his handling of suspicious market practices.