Three senior traders who were previously suspended in connection
with a global probe into the currency markets have been fired by
their employers, according to people familiar with the matter.
Richard Usher, formerly chief currencies dealer at J.P. Morgan
Chase & Co. in London, was placed on paid leave in October
2013, according to people familiar with the matter. Mr. Usher was
fired by the bank in the first week of October, a person familiar
with the matter said, and was listed as inactive on the register of
approved individuals of the U.K. Financial Conduct Authority as of
October 6.
Mr. Usher couldn't be reached for comment.
Earlier this month, HSBC Holdings PLC fired London-based senior
traders Edward Pinto and Serge Sarramegna, both of whom were
suspended in January in connection with the probe into currency
markets, according to a person familiar with the matter. Mr. Pinto
and Mr. Sarramegna couldn't be reached for comment.
The firings come as banks involved in the investigation into
possible wrongdoing in the currency market move closer to reaching
a settlement with the U.K.'s FCA, according to several people
familiar with the matter.
The FCA started its probe in 2013. The investigation was
initially focused on whether traders sought to manipulate
foreign-exchange prices to their own advantage, but it has now
expanded into many areas.
The Wall Street Journal reported last month that the FCA had
held preliminary settlement talks with executives from Citigroup
Inc., J.P. Morgan, Barclays Bank PLC, Royal Bank of Scotland Group
PLC, UBS AG and HSBC.
People familiar with the matter say the settlements, which could
be announced before the end of the year, are likely to see several
banks fined for failing properly to supervise employees. The FCA
declined to comment.
J.P. Morgan and Citigroup announced Tuesday they have boosted
their legal expenses to about $1 billion for the third quarter,
foreshadowing a possible settlement into far-reaching
investigations into the inner workings of the vast foreign-exchange
markets.
Katie Martin contributed to this article.
Write to Chiara Albanese at chiara.albanese@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires