LONDON – Goldman Sachs has dismissed a currency trader because of his ties to an inquiry into potential manipulation of benchmark currency rates, a person briefed on the matter said on Tuesday.
Last week, some of the world’s largest banks, including HSBC, agreed to pay a combined $4.25 billion to settle inquiries by regulators in the United States, Britain and Switzerland. Regulators accused the banks of conspiring to manipulate foreign currency markets.
Goldman Sachs was not among those banks but has been cooperating with information requests from regulators reviewing the foreign exchange market.
On Tuesday, Frank Cahill, who joined Goldman’s London office in 2012, was dismissed by the firm, according to the person, who was not authorized to discuss the matter publicly.
“This relates to a period before he joined Goldman Sachs and he has now left the firm,” Goldman said in a statement on Tuesday.
The Foreign Currency Fix
Regulators say that a group of London traders, known as the “cartel” and the “mafia,” illegally dipped into the $5.3-trillion-a-day currency trade.
By Channon Hodge, Aaron Byrd and David Gillen on Publish Date March 11, 2014. Photo by Aaron Byrd/The New York Times.Mr. Cahill could not be located for comment on Tuesday.
The Wall Street Journal reported Mr. Cahill’s dismissal earlier Tuesday.
About 30 traders at some of the world’s largest banks have been suspended or fired after internal inquiries. Several of those traders could potentially face criminal charges depending on the outcome of investigations by the Justice Department and the Serious Fraud Office of Britain.
This was the first action taken against an employee by Goldman since regulators began looking into the currency markets last year.
Mr. Cahill previously worked at HSBC after joining from Barclays in 2010, according to records maintained by the Financial Conduct Authority of Britain.
Mr. Cahill was among several unidentified traders whose chats were cited by the Financial Conduct Authority in announcing its settlements with banks last week, according to a person briefed on the matter.
HSBC agreed to pay about $618 million as part of settlements announced last week with the F.C.A. and the Commodity Futures Trade Commission.
After the settlement last week, HSBC said it did “not tolerate improper conduct, and will take whatever action is appropriate.”
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The fines come as regulators are increasingly targeting a business culture in the financial industry that they say encourages improper conduct by its employees.