Internal HSBC Probe Absolved Trader, DoJ Disagrees

In internal HSBC compliance probe turned up no wrongdoing in the case of a trader allegedly manipulating the foreign exchange market and committing wire fraud, a Financial Times report says. HSBC had determined that Mark Johnson, then the bank’s global head of forex cash trading, did nothing wrong when he allegedly placed orders in front of client orders, moving the price of the British pound to benefit their internal trading book. The probe of the 2011 incident further determined no misconduct occurred when an unnamed supervisor told the bank’s trading client that the currency price increase was due to a “Russian” bank in the market but did not mention the HSBC trade, as US authorities allege.