Mark Carney, the Governor of the Bank of England, pledged to appoint a new Deputy Governor at the Bank to lead a “root and branch” review of its strategy, after suspending an official over the foreign exchange market manipulation scandal.
Carney claimed that there was “no evidence” any Bank of England official had condoned manipulation of the foreign exchange market, as he faced down tough questioning from U.K. members of parliament (MPs).
He defended the Bank against MPs’ suggestions it should have been more alert to the possibility of foreign exchange market manipulations, after the matter was raised as part of regular meetings between the Bank and market participants, some of whom have since been arrested over the scandal.
Read Full Report: CNBC.com
Mark Carney’s Deception
Posted Sep 12, 2013
Watch Mark Carney’s failed attempt to deceive the MPs about his policy implementations.
Listen carefully and hear him admit loosening policy and increasing inflation is being implemented.
Mark Carney faces Forex questions from MPs
Posted Mar 11, 2014
The Governor of the Bank of England, Mark Carney, has been questioned by MPs about allegations that officials at the bank turned a blind eye to warnings of price rigging in the foreign exchange market.
The investigation into alleged manipulation of the foreign exchange market now takes in most of the world’s biggest banks, regulators in three continents, potentially hundreds of traders – and now the U.K’s central bank.
Here’s a look at the key issues involved:
Every day, a currency “fix” known as the WMR/Reuters fix, is agreed, based on the price that currency trades at over a 60 second period. At the center of the probe seems to be traders eager to make a quick profit by buying up currencies just before they knew clients were going to buy large amounts of the same currency at the daily “fix”. This way the traders could sell on at a profit when the price rose at the “fix.”
Some also appear to have passed on information to traders at other companies about big upcoming trades. All of this could have artificially raised the value of one currency against another.
Read more: http://www.cnbc.com/id/101482959