Belfast Telegraph

Carney in scandal shake-up pledge

By Staff Reporter

Mark Carney has pledged a "root and branch" review of the Bank of England's intelligence-gathering capabilities – including the creation of a new deputy governor position – after the central bank was sucked into the foreign exchange (forex) fixing scandal.

The Bank last week suspended a member of staff for failing to follow internal procedures relating to "records management and escalation" over allegations of fixing.

Despite minutes published last week suggesting market manipulation as early as 2006, the Bank insisted it was only made aware of the most serious allegations of price manipulation and collusion in the £3trn a day market last October.

More than 20 foreign exchange traders have so far been suspended or fired over the allegations of collusion between dealers over client orders and manipulating the "fixes" of currency rates.

Mr Carney said: "There appear to be "individuals who have lost sight of what a market is – and that's unacceptable."

"They decided to cheat to make their lives easier. That is against the principles of free markets and should be prosecuted to the fullest extent of the law."

Belfast Telegraph