US fines HSBC $175m over ‘unsound’ FX trading

HSBC has been fined $175m by the US Federal Reserve for "Unsafe and unsound practices" in its foreign exchange trading business. The Fed also said it had ordered the bank to improve controls and compliance risk management around its FX trading. Stuart Scott, the former head of European currency trading at HSBC, was arrested this summer in the UK at the behest of US authorities, who have charged him with forex-rigging along with Mr Johnson. Mr Scott is contesting his extradition to the US. Mr Scott left HSBC just weeks after the bank paid a $618m fine to US, UK and Swiss regulators for its involvement in foreign exchange rate rigging. Separately, Deutsche Bank has agreed to pay $190m to settle a US class-action lawsuit by customers who alleged that the German bank had caused them losses by manipulating the foreign exchange market.

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