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U.S. charges two HSBC executives over forex-related scheme
Source: Reuters
World | Wed Jul 20, 2016 12:51pm EDT
U.S. charges two HSBC executives over forex-related scheme
NEW YORK | BY NATE RAYMOND
A senior HSBC Holdings Plc (HSBA.L) manager has been arrested and charged alongside a former foreign exchange executive with engaging in a scheme to front-run a $3.5 billion transaction by one of the bank's clients, U.S. prosecutors said on Wednesday.
Mark Johnson, HSBC's global head of foreign exchange cash trading in London, and Stuart Scott, its ex-head of cash trading for Europe, the Middle East and Africa, were charged in a criminal complaint filed in federal court in Brooklyn, New York.
Prosecutors said the executives, who are both British citizens, misused information provided to them by a client that had hired HSBC to convert $3.5 billion to British pounds in connection with a planned sale of one of the unnamed company's subsidiaries.
Johnson, 50, and Scott, 43, used their insider knowledge to buy sterling in order to front-run the transaction, resulting in a spike in the price of the currency that was detrimental to HSBC's client, prosecutors said.
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U.S. charges two HSBC executives over forex-related scheme
NEW YORK | BY NATE RAYMOND
A senior HSBC Holdings Plc (HSBA.L) manager has been arrested and charged alongside a former foreign exchange executive with engaging in a scheme to front-run a $3.5 billion transaction by one of the bank's clients, U.S. prosecutors said on Wednesday.
Mark Johnson, HSBC's global head of foreign exchange cash trading in London, and Stuart Scott, its ex-head of cash trading for Europe, the Middle East and Africa, were charged in a criminal complaint filed in federal court in Brooklyn, New York.
Prosecutors said the executives, who are both British citizens, misused information provided to them by a client that had hired HSBC to convert $3.5 billion to British pounds in connection with a planned sale of one of the unnamed company's subsidiaries.
Johnson, 50, and Scott, 43, used their insider knowledge to buy sterling in order to front-run the transaction, resulting in a spike in the price of the currency that was detrimental to HSBC's client, prosecutors said.
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Read more: http://www.reuters.com/article/us-hsbc-arrest-idUSKCN1001T1
LBN thread: Top HSBC manager 'arrested in New York'
