Mark Carney faces MPs' questions over forex fixing probe

Bank of England governor Mark Carney is to be quizzed by MPs over claims some of the bank's officials knew about alleged foreign exchange rate fixing.

Mr Carney's appearance before the Treasury Select Committee comes a week after minutes of meetings emerged suggesting Bank officials were aware of rigging attempts as early as 2006.

The bank said there was no evidence its staff had colluded with forex rigging.

But one member of staff has been suspended over compliance concerns.

'As bad' as Libor

The committee said it would quiz bank officials, including governor Mr Carney, about the forex investigation when he makes a scheduled appearance before MPs later.

Regulators are concerned alleged forex manipulation could become the latest banking scandal
He will also be questioned about the abandonment of his flagship "forward guidance" policy on interest rates, as well as Scottish independence.

The minutes of meetings from 2006 were published last Wednesday following a Freedom of Information request.

They show that a senior member of the Bank of England's staff was told of "attempts to move the market" and a meeting with senior foreign exchange dealers from some of the world's largest banks.

The bank said in statement that it did not condone any form of market manipulation.

It said an oversight committee would lead further investigations into whether bank officials were involved in forex market manipulation or were aware of manipulation, or at least the potential for such manipulation.

It has called in law firm Travers Smith to assist with its investigation into what its officials might have known.

Regulators have expressed concern that alleged forex manipulation could become the latest banking scandal.

Traders are alleged to have colluded in setting certain key exchange rates in the foreign exchange market, resulting in big profits.

The head of the Financial Conduct Authority, Martin Wheatley, said last month that currency manipulation was "every bit as bad" as the Libor scandal, where banks including Barclays, Royal Bank of Scotland and UBS paid fines totalling $6bn relating to fixing inter-bank lending rates.

Source:BBC