WASHINGTON, July 17 (Xinhua) -- U.S. Federal Reserve announced on Monday that it will fine BNP Paribas and certain of its U.S. subsidiaries 246 million U.S. dollars for its unsafe and unsound practices in foreign exchange markets.
According to the statement, the BNP Paribas was found deficiencies in its oversight and internal controls over its forex trading, as the bank failed to detect and address that its traders used electronic chatrooms to communicate with competitors about their trading positions.
In January, a former BNP Paribas trader was banned by the Fed from participating in the banking industry for his manipulation of forex prices.
The U.S. central bank also prohibited the French company from re-employing individuals involved in the activity that led to the fines.
In addition to the fines, the Fed also required BNP Paribas to improve its senior management oversight and controls over forex trading.
