Deutsche fires three New York foreign currency traders

Wednesday 05 February 2014 07.39
Deutsche Bank sacks three New York-based forex traders
Deutsche Bank sacks three New York-based forex traders

Deutsche Bank has fired three New York-based currency traders, according to a source familiar with the situation.

The moves are the latest sign that a probe over alleged manipulation of foreign exchange markets is gathering steam at the bank.

Diego Moraiz, Robert Wallden and Christopher Fahy were terminated by the bank, which told trading floor staff of the development yesterday, according to the source.

"Deutsche Bank has received requests for information from regulatory authorities that are investigating trading in the foreign exchange market," a bank spokeswoman said in an emailed statement. 

"The bank is cooperating with those investigations, and will take disciplinary action with regards to individuals if merited."

The terminations come as authorities around the world, including Britain's Financial Conduct Authority and the US Justice Department, investigate possible manipulation in the $5.3 trillion a day global forex market.

Investigators are looking at activity around benchmark foreign exchange rates, often referred to as fixes, which are used to price trillions of dollars worth of investments and deals and relied upon by companies, investors and central banks.

Many of the largest global banks, including Deutsche Bank, UBS, JPMorgan Chase & Co and Citigroup, have said they are co-operating with the probes. Several banks have suspended or fired traders.

Earlier in December, Deutsche had suspended Moraiz, a source told Reuters previously. 

Moraiz, who had been with Deutsche Bank since 2004 and is close to 50, was the head of its emerging markets foreign exchange trading desk and specialised in trading the Mexican peso. 

He was a managing director, and the most senior of the three traders to be fired yesterday.Fahy, who is in his mid-30s, and Wallden, 29, were both directors in the forex trading unit.

The Wall Street Journal reported in November that FBI agents had visited Wallden's home, where they showed him transcripts of an electronic chat in which he appeared to boast about trying to manipulate forex markets.