RBS sends records to regulator in FX probe

10th Oct 2013 12:23

UK banking group Royal Bank of Scotland (RBS) has sent copies of instant messages from a former currency trader to the Financial Conduct Authority as part of a probe into a possible manipulation of the foreign exchange (FX) markets.The news comes in the wake of the LIBOR rate-setting scandal that has hit the reputation of the industry over the last year.According to various news reports, after four months of an internal investigation RBS has handed over records of messages sent by and to an employee who left the bank several years ago.Bloomberg, which first reported about rumours of manipulation in the $5tn-a-day FX market back in June, said that the trader's communications with others were deemed "inappropriate", according to their sources. The agency said that fellow global banks Deutsche Bank and Citigroup are also reviewing emails, instant messages and phone records for evidence of potential rate-rigging.RBS, Barclays, UBS and ICAP have all settled charges over the alleged manipulation of interbank borrowing rates (LIBOR) over the past 12 months, paying a total of $2.5bn in fines to regulators. Other financial institutions still remain under investigation in that case.BC