Belfast Telegraph

Former HSBC banker bailed in London on foreign exchange rigging charges in US

A former HSBC banker has been arrested and bailed in London on foreign exchange rigging charges in the US, it has emerged.

Stuart Scott, HSBC's former head of cash trading for Europe, the Middle East and Africa, was arrested on Monday following an extradition request by the US Department of Justice.

It is understood he plans to fight the extradition order and is due to appear before Westminster magistrates on July 31 for the first hearing in what looks set to be a lengthy legal battle over whether he is sent to the US to face trial.

Mr Scott was charged last summer, when his former boss Mark Johnson, HSBC's ex-head of global foreign exchange cash trading, was arrested in New York by FBI agents and charged with fraudulently rigging a 3.5 billion dollar (£2.7 billion) currency exchange deal.

Mr Johnson has pleaded not guilty to a charge of wire fraud and conspiracy and is on bail awaiting trial.

The two men are accused by US authorities of conspiring to commit wire fraud between November and December 2011 after "misusing information" from a client that hired HSBC to carry out a foreign exchange transaction linked to the sale of a foreign subsidiary.

It is alleged the two men "caused the 3.5 billion dollars (£2.7 billion) foreign exchange transaction to be executed in a manner that was designed to spike the price of the pound sterling, to the benefit of HSBC and at the expense of their client".