Bank of England Governor Mark Carney Shrugs Shoulders Over FX Rigging Interrogation

Mark Carney claims that there is no evidence to suggest that any Bank of England official had condoned FX market manipulation

Following today’s questioning by British Members of Parliament (MPs), Mark Carney, the Governor of the Bank of England, responded by claiming that there there was “no evidence” that any Bank of England official had condoned manipulation of the FX market.

In a report released today by CNBC, it was stated that Mr. Carney also pledged to appoint a new Deputy Governor at the Bank to lead a “root and branch” review of its strategy, and signaled that he is prepared to make the Bank a more open institution.

Parliament’s Treasury Select Committee quizzed Mr. Carney and the bank’s Executive Director of Markets Paul Fisher about allegations that bank officials condoned or were informed of manipulation in the foreign exchange market or the sharing of confidential client information.

The high profile nature of the allegations brought by international regulatory authorities, government leaders and lawmakers against several of the world’s most prominent banking institutions has led to the Bank of England, responsible for governance of all banking corporations under British jurisdiction since the Financial Services Authority (FSA) was disbanded in 2013 in favor of the Financial Conduct Authority (FCA).

Mr. Carney presides over the Bank of England’s policy and therefore is ultimately responsible for ensuring that the banking sector conducts its business in a right and proper fashion, whereas the financial markets industry participants in Britain which operate outside of the banking sector are overseen by the FCA.

With many banks facing class action lawsuits over the allegations, Mr. Carney is charged the particularly cumbersome task of ensuring that the matter is brought to a close concerning the accused firms which stand on British soil, and indeed managing the consequences should matters go awry.

LeapRate will endeavor to elaborate further on this matter as it develops.

For more on the global Forex industry see the LeapRate-Dow Jones Forex Industry Report.


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