HSBC share price: UK lender fires two currency traders ahead of FCA settlement

on Oct 15, 2014
Updated: Oct 21, 2019
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iNVEZZ.com, Wednesday, October 15: Two currency traders at HSBC Holdings Plc (LON:HSBA), Europe’s largest bank, have left the bank, as efforts to settle a UK probe into alleged foreign-exchange manipulation draw closer to an end, according to a Reuters report.

Citing unnamed sources familiar with the matter, the newswire said yesterday that Serge Sarramegna, former UK head of G10 FX cash trading at HSBC, and Edward Pinto, a spot Scandinavian currencies trader at the bank, were both fired. According to a separate report by Bloomberg, they had been on suspension since at least January following an internal probe by the UK lender.

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The reports also said that Richard Usher, chief currency dealer in London at JPMorgan Chase & Co, had left the US bank in recent weeks.
According to Bloomberg, all three had been on leave from their posts for months while authorities investigated allegations that senior traders used instant-message groups to share information about their positions and client orders to manipulate currency markets.

In today’s trading, HSBC shares were down two percent at 622.10p as of 14:46 BST. The lender’s stock has fallen 6.3 percent since the start of the year.
**Probe**
HSBC and JPMorgan are among six banks in settlement discussions with the UK’s Financial Conduct Authority (FCA). According to sources cited by Bloomberg, the watchdog is expected to reach settlements with Royal Bank of Scotland Group Plc (LON:RBS), Barclays Plc (LON:BARC), Citigroup Inc and UBS AG next month.

Reuters noted that it was unclear whether the moves by HSBC and JPMorgan were connected to the investigation. But the newswire cited sources who said that it added to expectations that the year-long investigation might be close to yielding its first results.


“This is interesting. It’s a sign we’re getting somewhere (in the investigation),” one of the sources said. “Things are starting to move apace.”
More than 30 currency traders at several leading banks have been suspended, placed on leave or fired, as a number of authorities, including the US Department of Justice have conducted investigations into the matter, Reuters noted.
**Analysts on HSBC’s share price**
According to the Financial Times, as of October 10, 2014, the consensus forecast amongst 57 polled investment analysts covering HSBC has it that the company will outperform the market. The same consensus estimate has been maintained since the sentiment of investment analysts improved on May 12, the FT notes.
**As of 15:16 BST buy HSBC shares at 624.70 pence**
**As of 15:16 BST sell HSBC shares at 624.50 pence**

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