FOREX SCANDAL: former trader at Royal Bank of Scotland has become the first UK banker to be arrested on suspicion of rigging the £3.5trillion
A former trader at Royal Bank of Scotland has become the first UK banker to be arrested on suspicion of rigging the £3.5trillion a day foreign exchange market. City of London police and the Serious Fraud Office arrested the unnamed man at an address in Billericay in Essex. The SFO refused to give any more details, confirming only that an individual had been arrested in connection with one of its investigations. But sources confirmed that the individual worked at RBS and was involved in the trading of foreign current rates.
Six banks, including RBS and HSBC, were fined a total of £2.6billion by UK and US regulators last month for their part in the racket.
Bankers, who called themselves the 'A-Team', ‘Three Musketeers’ and ‘The Players’ colluded online by sharing confidential information about clients’ currency orders to boost their bonuses.
The Serious Fraud Office launched a criminal investigation into the sprawling ‘Forex’ market in July but until now has made no arrests, despite around 30 bank staff sacked or suspended.
David Buik, a veteran financial commentator from broker Panmure Gordon, described the foreign exchange scandal as the ‘saddest episode in my 52 years working in the City.’ He said: ‘I’d be amazed if there were not many more arrests. 'The foreign exchange market is the biggest in the world so could make any wrongdoing related to Libor rates seem like a Vicarage tea party by comparison. Those found guilty of fraud should be sent to jail.’
John Mann, a Labour member of the Treasury Select Committee said: ‘I’d expect to see more arrests. Those involved should be held to account. But I would also expect those arrested to reveal the senior managers who turned a blind eye.’
The names of the individual and those 12 others arrested have been protected by a court order.
