Washington - Former Barclays trader Peter Little, who was accused of
using electronic chat rooms to co-ordinate with bank traders allegedly
trying to manipulate foreign-exchange rates, is being fined $487,500 by
the Federal Reserve and faces a permanent ban from US banking.
When he led the Barclays FX spot desk in New York
, Little engaged in unsafe and unsound practices and failed to properly supervise subordinate traders, the Fed said on Friday.
The sanctions against Little follow Fed banking bans imposed on former Barclays traders Christopher Ashton and Michael Weston. Little was fired by the bank in 2013.
Traders from Barclays were associated with "the Cartel", the name given to a now-notorious chat room used by senior traders at banks including JPMorgan Chase and UBS to share information and agree on ways to try to move currency benchmarks, including the so-called 4pm fix.
Little’s information was frequently exchanged with traders active in the Cartel, according to the Fed’s enforcement action.
"Little co-ordinated with other dealers and attempted to manipulate benchmark fixes in order to profit, which would impact both his bonus compensation and the security of his position as head of desk," according to the Fed, which accused him of co-ordinating with competitors or attempting to influence benchmark fixes at least 13 times.
The Fed fined six banks for currency rigging and said the lenders had to co-operate in the probe against employees.
"Little will fight and prevail against the Fed’s baseless allegations," Michael Watsula, a lawyer representing Little, said.
"The Federal Reserve denied Little any meaningful opportunity to explain the fundamental error of its theories before it sullied his good name with these charges."
Bloomberg
When he led the Barclays FX spot desk in New York
, Little engaged in unsafe and unsound practices and failed to properly supervise subordinate traders, the Fed said on Friday.
The sanctions against Little follow Fed banking bans imposed on former Barclays traders Christopher Ashton and Michael Weston. Little was fired by the bank in 2013.
Traders from Barclays were associated with "the Cartel", the name given to a now-notorious chat room used by senior traders at banks including JPMorgan Chase and UBS to share information and agree on ways to try to move currency benchmarks, including the so-called 4pm fix.
Little’s information was frequently exchanged with traders active in the Cartel, according to the Fed’s enforcement action.
"Little co-ordinated with other dealers and attempted to manipulate benchmark fixes in order to profit, which would impact both his bonus compensation and the security of his position as head of desk," according to the Fed, which accused him of co-ordinating with competitors or attempting to influence benchmark fixes at least 13 times.
The Fed fined six banks for currency rigging and said the lenders had to co-operate in the probe against employees.
"Little will fight and prevail against the Fed’s baseless allegations," Michael Watsula, a lawyer representing Little, said.
"The Federal Reserve denied Little any meaningful opportunity to explain the fundamental error of its theories before it sullied his good name with these charges."
Bloomberg
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