The Bank of England showed the exit door to a staff member for playing a vital role in foreign exchange market manipulation.
ForexMinute.com – Wednesday brought a disgrace to the Bank of England’s long-standing reputation, as one of its officials was found to be involved in a recent forex scandal. The bank straightforwardly suspended the employee from his duties, after an internal investigation manifested that the person was acting against the bank’s policies on administering internal records.
The event has given an edge to many speculations that considered the BOE’s possible role in the foreign exchange rate manipulation. With the allegation close to being proved, the bank’s position as a key guardian of the Pound, and the main regulator, is under scrutiny.
The event has also befuddled the international finance markets by raising questions against the London’s top finance hierarchy. As per the person familiar with the probe, the suspended official was also elevating crucial information to senior staff of the central bank. It somehow suggests that the top officials, sitting in the central bank, knew of the possible manipulation but never acted against it.
Mark Garnier was the first one to put contrast to the whole speculation. The member of the BOE’s parliament questioned, “Why were they not referring it to the regulator?” while pressing urgency to get to the bottom of such corruption. He also expressed his plans to raise the same question with BOE’s Gov. Mark Carney, who is scheduled to give his testimony on the matter next week before the parliamentary committee.
As the investigation further promises to hit the top officials, Bank of England has decided to handle it to its independent oversight committee. Its internal committee has by far looked over 15,000 emails, 20,000 chat-room messages, and more than 35 hours of voice chats to find the expected voids within the bank. It however had been unable to find any evidence regarding its staff “colluded in any way in manipulating the foreign-exchange market or in sharing client information.”
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