The Federal Reserve Board said Monday that it will fine BNP Paribas and some subsidiaries $246 million for their "unsafe and unsound practices in the foreign exchange (FX) markets." The board said the bank had insufficient oversight and controls over its FX traders, who allegedly discussed trading positions with competitors.
BNP Paribas said in a statement that it "deeply regrets the past misconduct which was a clear breach of the high standards on which the Group operates."
The bank said the fine is related to activity that occurred between 2007 and 2013. BNP Paribas said it has since strengthened internal oversight and compliance measures, but pledged to continue those improvements.
The fines come amid a larger Federal Reserve Board investigation of currency market manipulation. The board has also slapped UBS, Deutsche Bank and Barclays with enforcement actions.
In January, the Fed permanently banned a former BNP Paribas trader from the banking industry for his role in manipulating foreign exchange prices.
In May, New York state regulators fined BNP Paribas $350 million for similar allegations of currency market manipulation.
Source: Bloomberg Pro Terminal
Trader Bozhidar Arabadzhiev
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