Steven Cho, head of spot and forward foreign exchange trading at Goldman Sachs will leave the bank, the Wall Street Journal Chiara Albanese reports.
The announcement came hours after Reuters reported that the global head of foreign exchange at Citi, Anil Prasad, will leave the bank. A source told Reuters that Prasad’s decision was “entirely unrelated to the on-going FX investigations.”
Major banks have been shedding currency traders amid a multi-government investigation into widespread rigging of the FX market.
Deutsche Bank suspended the head of its EM foreign exchange trading desk in New York, Diego Moraiz, in connection with the investigation, Reuters reported days ago.
Regulators are investigating whether traders cooperated in order to manipulate the benchmark WM/Reuters “fix.”
“The evidence, in the form of electronic chat-room messages, appears to show what banks have feared for months,” the Journal’s Katie Martin and David Enrich reported in December. “That traders from different banks shared information about client orders and agreed to a sequence for placing their own trades to their advantage.”
Bloomberg’s Greg Farrell reports that Benjamin Lawsky, the superintendent of New York’s Department of Financial Services, has asked more than a dozen banks about their currency trading practices.
The investigation is heating up, and like the similar Libor scandal, it looks like heads may roll here.