NY banking regulator probing Barclays, Deutsche Bank’s forex algorithm
By Supriya Kurane
Benjamin Lawsky, the head of New York's Department of Financial Services (DFS), has ordered a monitor to be installed at Deutsche Bank and already has one in place at Barclays – a move that will allow him to collect greater evidence of alleged manipulation, said the source who did not want to be named.
"Deutsche Bank has received requests for information from regulatory authorities that are investigating trading in the foreign exchange market. The Bank is cooperating with those investigations," Calabro said, quoting the earlier statement.
Lawsky, who started his probe into possible manipulation of currency markets in February, chose not to coordinate a settlement with other regulators because he viewed those deals as too weak, a source told Reuters last month, an indication he's likely to go after the banks later and demand larger penalties.
Reuters reported last month that the civil settlements struck between six global banks and U.S. and UK authorities set the stage for negotiations over related ongoing probes that could bear much more severe consequences.
(Reporting by Supriya Kurane in Bengaluru; Editing by Gopakumar Warrier)