Two major foreign banks, HSBC Holdings plc HSBC and Deutsche Bank AG DB , resolved legacy business misconduct matters in the United States. The banks were accused of rigging foreign exchange (FX) rates.
HSBC was fined $175 million for its "unsafe and unsound practices in its foreign exchange trading business" by the Federal Reserve. The bank was accused of failure of oversight and internal control of its FX traders who buy/sell currencies "for the firm's own accounts and for customers."
HSBC is now required to improve control and fix shortfalls in "governance, risk management, compliance, and audit policies" pertaining to its FX trading operations. Company spokesman Rob Sherman said, "We are pleased to have resolved this matter related to practices in the FX market from 2008-2013."
In a separate litigation, Deutsche Bank agreed to resolve a class-action lawsuit by customers that alleged it of rigging FX rates. The bank will be paying $190 million as penalty. ...
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