A senior figure at the Bank of England was alerted as early as May 2008 to concerns that currency traders were sharing information about their orders for clients, according to a report published by Threadneedle Street.
The Bank of England’s chief currency dealer – Martin Mallett – was fired for “serious misconduct” on Tuesday, the day before the publication of the review into whether the Bank knew about the rigging of foreign exchange markets. The Bank said Mallett’s dismissal was not related to findings in the report by QC Lord Grabiner but due to information uncovered during the Bank’s own internal review.
In the report, Grabiner said Mallett had made an “error of judgment” by not telling superiors about his concerns that the foreign exchange markets could involve collusive behaviour.
“I should emphasise the limited nature of this criticism. Mr Mallett did not act in bad faith,” said Grabiner.
Riiight. Nothing to see here, move long.