Upheaval in FX Business

As probes into FX manipulation allegations grow, so does turnover among traders.

The foreign-exchange trading business was in upheaval across Wall Street as senior executives resigned and others were fired amid an expanding probe of possible manipulation.

Benjamin Lawsky, superintendent of New York’s Department of Financial Services, asked more than a dozen firms, including Deutsche Bank AG, Goldman Sachs Group Inc., and Citigroup Inc., for documents on their currency-trading practices, said a person with knowledge of the matter. Deutsche Bank, the top foreign-exchange trader, fired four dealers after an internal probe, people with knowledge of the move said. Goldman Sachs lost two partners, while Citigroup said its foreign-exchange chief will leave in March.020514_Bloomberg_PQ1

Prasad, Cho, and Lim haven’t been accused of any wrongdoing.

Wall Street firms often see departures in February and March after awarding year-end bonuses, which can account for the majority of an employee’s pay. Some banks also make cuts in their senior ranks around this time to make room for new hires and internal promotions.

Volumes in the biggest financial market fell to $4.87 trillion in December compared with $5.7 trillion in June, according to the latest data from CLS Bank, which operates the world’s largest foreign-exchange settlement system.

 

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