The Royal Bank of Scotland is credited to be one of the largest Fx dealing banks in the world, with the top five banks; Barclays Plc, Citigroup Inc., Deutsche Bank AG, JPMorgan Chase & Co., and UBS AG controlling about 53 percent of global volume in 2013 according to a Bloomberg report.
RBS has devoted vast resources towards ensuring a deep internal cleaning, haven already suspended or sacking some traders, though still retaining a substantial proportion of its FX trading personnel as a result of the recent Fx rate fix scandal which brought regulators to fine six major banks a total of $4.3 billion for failing to stop traders from trying to manipulate the foreign exchange market, following a yearlong global investigation including HSBC Holdings Plc, Royal Bank of Scotland Group Plc, JPMorgan Chase & Co, Citigroup Inc, UBS AG and Bank of America Corp.
To further ensure that trust and credibility is regained in the bank, a suspension was placed on paying out annual bonuses to about 18 FX traders.
Jon Pain, the head of conduct and regulatory affairs at RBS had this to say:
“We are undertaking a robust and thorough review into the actions of the traders that caused this wrongdoing and the management that oversaw it,” he said.
“This is a complicated process but also an essential one in order to identify culpability and accountability for this unacceptable misconduct.
“To be clear, no further bonus payments will be made or unvested bonus awards released to those in scope of the review until it has concluded and its recommendations have been considered,” he added.
An ex Forex trader of RBS, was arrested by the City of London police and Serious Fraud Office staff last Friday. This is expected to lead to further arrests as Chancellor of the Exchequer George Osborne has proposed treating the Fx fix scandal as a criminal offense.