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BNP Paribas fined US$246m by Fed over currency manipulation
[WASHINGTON] BNP Paribas SA was fined US$246 million by the Federal Reserve for failing to prevent its currency traders' from using electronic chatrooms to manipulate prices, according to a Monday statement from the regulator.
The Fed said the Paris-based lender's deficiencies - which already led to a US$350 million settlement in May with the New York Department of Financial Services - constituted unsafe and unsound practices and ordered the bank to improve its oversight and internal controls over foreign-exchange trading.
Earlier this year, a former BNP Paribas trader, Jason Katz, pleaded guilty to violating federal antitrust laws. The Fed barred him from the US banking industry in January.