Deutsche Bank, the world's largest trader of currencies, through its Co-CEO Anshu Jain, said the charges of rigged markets have eroded the trust in the financial markets. This comes as a Federal Bureau of Investigation inquiry was looking into manipulations of the London Interbank Offered Rate.
The said investigation is at its early stages and was confirmed by an anonymous source familiar with the ongoing matter.
According Jain, "Issues like Libor manipulation, allegations of foreign exchange manipulation, that is sapping at the very core of what we are trying to do. What are we going to do abnout it? It's a long term reform." He made the remarks during a panel discussion at the Washington meeting of the Institute of International Finance.
Aside from Deutsche Bank, Citigroup Inc and the Royal Bank of Scotland are reviewing emails, instant messages and phone records of their respective foreign exchange unit employees for evidence of manipulation. This was confirmed by three people with knowledge of the investigations. All three banks though have declined to make any comment on the matter.
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