Deutsche Bank preemptively suspends a forex dealer

 Internal investigation is suspecting benchmark manipulation of Argentinian Peso rates

Deutsche Bank is the latest amongst heavyweight players in the foreign exchange industry that is parting with a trader on suspicion that benchmark forex rates have been manipulated. Sources close to the German daily newspaper die Welt have reported that the currency trader worked in the New York branch and was dealing with Argentine Pesos. According to the information in the article there might be a follow up with more traders parting with their jobs.

The suspension comes after an internal probe launched by Deutsche Bank has revealed some suspicious emails sent by the Argentinian Peso dealer that made auditors believe that he might be involved in tampering with the exchange rate benchmarks. While a definitive conclusion could not be reached, the bank has decided to take precautionary steps and proceeded suspending the trader.

According to the Die Welt article the spokesman for Deutsche Bank declined to comment on specific staff related cases and has only confirmed that the bank is fully cooperating with authorities relating to the benchmark foreign exchange rates rigging investigation that was launched last quarter.

This comes only a couple of days after European head of spot foreign exchange trading Rohan Ramchandani has left Citi which triggered speculation that it might be related to the probe. Sources cited in a Reuters report have claimed that he took leave in October while the Wall street Journal has reported that he was fired by Citi itself.

According to a Bloomberg report late on Monday the Federal Reserve has joined the bulk of regulators already involved in the foreign exchange rates rigging probe. Since the FED is in charge of supervising US bank holding companies that may not come as s big surprise. What is interesting is how the central bank will be able to help the investigation. There still isn’t any official comment on the matter by the Federal Reserve itself.

For the full article by the German newspaper visit Die Welt’s website.

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

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