October 06, 2016
Federal Reserve Board takes action to bar two former foreign exchange (FX) traders of HSBC from employment in banking industry
For release at 11:00 a.m. EDT
The Federal Reserve Board on Thursday took action to bar two former foreign exchange (FX) traders of HSBC from employment in the banking industry. Mark Johnson and Stuart Scott, former senior HSBC managers, were recently indicted for criminal wire fraud in connection with their trading activities at HSBC Bank plc, a subsidiary of HSBC which is a U.S. bank holding company. Johnson was a managing director and the global head of FX cash trading. In that role, Johnson supervised FX trading desks for HSBC. Scott reported to Johnson and was head of FX trading for Europe, the Middle East, and Africa and was also employed by HSBC Bank plc.
According to the indictment, Johnson and Scott made multiple misrepresentations to an FX client of HSBC in connection with a large pre-arranged currency transaction. The indictment also alleges Johnson and Scott engaged in conduct to trade to the detriment of HSBC's client and for their own (and HSBC's) benefit.
In issuing today's enforcement actions, the Board found that given the indictment, Johnson's and Scott's continued participation in any depository institution may threaten to impair public confidence in that institution. The prohibition is effective until the criminal charges against Johnson and Scott are resolved or disposed of.
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