Could it be the worm that turned? The New York Department of Financial Services is probing irregularities and allegations of rate fixing in the NY Forex market. So far senior executives have resigned, announced resignations and one bank has sacked four traders. The probe was sparked by a report that traders at the world’s largest banks colluded to manipulate the benchmark WM/Reuters rates and apparently, even staff who are not in Benjamin Lawsky’s cross-hairs are reassessing career moves.
The results of the investigation could be severely damaging to those who have allowed, or turned a blind eye to, market manipulation in the past. If the reports of uncertainty in the ranks are true, the NYDFS could be about to transform the attitudes of those who operate and deal on currency markets.
Full report: Newsroom Bloomberg