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Banker was arrested before emigrating

RBS currency trader named in global forex inquiry

RBSRoyal Bank of Scotland currency trader Paul Nash has been named as the first individual arrested in connection with alleged manipulation in the foreign exchange market, according to sources quoted by Reuters.

Nash, who was suspended by RBS in 2013, is said to be the man arrested in Billericay, southeast England, on 19 December, only days before he emigrated to Canada. He left on Christmas Day and has rented out his family home.

Nash has not been charged with any offence but did appear at Westminster Magistrates’ Court on 23 December over variations to his bail conditions.

The Serious Fraud Office (SFO) told Reuters only that a 48-year-old man had appeared at the London court on that date in connection with a global investigation into allegations of manipulation in the $5.3 trillion-a-day forex market.

More than 50 RBS employees, former employees and employees of other banks, are being investigated over the affair which led to five banks being fined some £2 billion. RBS chief executive Ross McEwan said in an update on the inquiry last month that that those involved will be dealt with through clawback, awards forfeiture or disciplinary procedures.

Chairman Sir Philip Hampton “condemned the actions of those employees” involved in the scandal. Also penalised were HSBC, Swiss bank UBS, and US banks JP Morgan Chase and Citibank.

The UK’s Financial Conduct Authority and the US Commodity Futures Trading Commission accused the banks of failing to control their practices. Barclays is subject to a separate hearing while the Swiss regulator FINMA handed out a 134m Swiss francs penalty on UBS.

RBS agreed to pay penalties of £217m to the FCA and $290 (£182m) to the CFTC to resolve the investigations. These penalties are covered by the £400m provision recorded in the Q3 2014 results as previously disclosed.

The failings occurred between 1 January 2008 and 15 October 2013, the FCA found.

 

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