Deutsche Bank has fired three currency traders in New York as regulators worldwide ramp up their investigations into potential manipulation of the $5-trillion-a-day foreign exchange market, according to a person briefed on the matter.
The three employees include the head of Deutsche Bank’s emerging markets foreign exchange trading desk in New York and two traders, said the person, who was not authorized to discuss the matter publicly.
Deutsche Bank, the largest trader of currencies, with about 15.2 percent of the market, placed several traders in New York on leave in January.
The bank declined to comment on Wednesday, citing its policy not to discuss individual employees.
Deutsche Bank has said it is cooperating with the investigations and would “take disciplinary action with regards to individuals if merited.â€
Reuters first reported the firings on Tuesday.
The news comes as the chief executive of Britain’s Financial Conduct Authority, Martin Wheatley, described the currency manipulation charges on Tuesday as “every bit as bad as they have been with Libor.â€
In the last two years, banks have combined to pay more than $5 billion in fines related to manipulation of the London interbank offered rate, or Libor, and other benchmark interest rates.
At least 10 people in Britain and the United States are facing criminal charges related to Libor. The first criminal case in Britain is expected to go to trial next year.
Regulators in Britain, the United States, Germany, Switzerland and Hong Kong have started investigations into the currency markets in the last year, all of which are in the early stages.
More than a dozen foreign exchange traders at some of the world’s largest banks, including Barclays, UBS and JPMorgan Chase, have been placed on leave over questions about whether they colluded to manipulate benchmark currency rates.
This week, the Lloyds Banking Group placed a senior currency trader on leave as part of its own internal investigation, according to people briefed on the matter.
In January, Citigroup fired the head of its European spot currency trading desk after he was placed on leave last year.
Citigroup and HSBC have each suspended currency traders in recent weeks.
Neither the banks nor any of the traders who have been suspended or fired have been accused of wrongdoing.
