HSBC part of global forex probe


Banking giant HSBC said Monday that it was being investigated along with other banks as part of a worldwide probe into the possible manipulation of foreign exchange trading.

It comes as the bank, the biggest in Europe, announced a 28 percent jump in quarterly net profit to $3.2 billion.

The London-based bank said in its earnings statement that the Financial Conduct Authority, Britain’s bank regulator, “is conducting investigations alongside several other agencies in various countries into a number of firms, including HSBC, relating to trading on the foreign exchange market.”

HSBC added that it was “cooperating with the investigations which are at an early stage.”

HSBC joins British banks Barclays and Royal Bank of Scotland (RBS) in confirming that they are part of the investigations.

Deutsche Bank, Swiss lender UBS and U.S. pair Citi and JPMorgan Chase have also come forward to say that they are cooperating with regulators over the affair.

According to sources, Barclays has suspended six traders while it investigates the possible manipulation of foreign exchange markets and RBS has suspended two.