The Bank of
The inquiry will examine claims that at a meeting between Bank officials and senior currency traders last April the officials said it was permissible for traders in different banks to share information about clients' positions ahead of the setting of a benchmark rate in the foreign exchange market.
"The governors immediately initiated a full review into it led by the Bank of
Bailey, who is in charge of supervising financial firms, said the Bank had found no evidence that officials had endorsed sharing of information but added: "We do not regard that review as over."
Bailey said the Bank's inquiry had not yet seen the anonymous trader's notes from the meeting.
Bailey agreed with committee member
"I agree with you on that. That is why we have set up this investigation and this process," Bailey said. "The governors take the whole question of the reputation and integrity of the central bank extremely seriously. It's the most important thing we have."
The benchmark in question is used to price a wide variety of financial products and is the subject of regulators' attention amid allegations that traders at rival banks were sharing information about their orders from clients to manipulate the price.
A record of the April meeting released by the Bank showed it was chaired by
The meeting was between senior traders at investment banks and a subcommittee of the Bank's foreign exchange standing committee.
The officials are alleged to have said the practice might benefit markets because it made them more stable.
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