February 25, 2015 / 10:36 AM / 5 years ago

RBS suspends another two staff in foreign exchange probe

A branch of the Royal Bank of Scotland is seen in the City of London December 16, 2014. REUTERS/Toby Melville

LONDON (Reuters) - Royal Bank of Scotland (RBS.L) said another two employees had been suspended as part of an investigation by the bank into failings in its foreign exchange business.

“We can confirm that two members of staff have been suspended as part of the on-going FX investigation at the bank,” the bank said on Wednesday. It declined to comment on the identity of the employees suspended.

RBS, 79 percent owned by the British government, launched an internal review into its forex activities after it was one of six banks fined a combined $4.3 billion (2.8 billion pounds) last month for failing to stop traders trying to manipulate currency markets.

RBS has already suspended three employees who were among six placed in a disciplinary process. It also said it was reviewing the conduct of more than 50 current and former traders who were involved in the part of the investment bank that was the focus of the regulators’ investigations.

RBS paid $634 million in fines to UK and U.S. authorities as part of the forex settlement, when authorities said traders had shared confidential information about client orders and coordinated trades to boost their own profits.

The Times newspaper reported on Wednesday that the Financial Conduct Authority is escalating its supervision of foreign exchange traders in the City after the discovery of further misconduct by the U.S. Department of Justice.

It said the latest cases relate to the rigging of emerging market currencies, which did not form part of the FCA’s internal investigation.

The DoJ, Federal Reserve and New York’s financial regulator are still probing banks over foreign exchange trading.

(This version of the story corrects to show three staff previously suspended were among six placed in disciplinary process)

Reporting by Matt Scuffham; Editing by Steve Slater and Susan Thomas

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