Traders Are So Scared of Regulators They’ve Even Quit Swearing
- Swearing, sending news articles draw red flags from compliance
- Banks are acting like Big Brother after billions in penalties
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After a global scandal that cost them $14 billion in fines and settlements, banks are taking no chances -- they’re even cracking down on currency traders for offenses as minor as uttering the f-word on the phone.
The pendulum has swung away from the relatively permissive environment of earlier this decade, when traders allegedly manipulated prices, front-ran clients and abandoned unprofitable trades -- actions that put their interests before those of customers. Former HSBC Holdings Plc currency boss Mark Johnson was the first to be convicted, and three ex-traders from other banks are scheduled to go on trial Oct. 9 in New York.