Banks face court action

Scandal puts two more banks in the spotlight following widespread firings and internal disputes

Banks face court action
The list of currency traders taking action against their employers in the wake of the foreign exchange scandal in London has just got longer.

Bloomberg has revealed that two additional bankers are joining the long line of those taking action after $10 billion in fines were dished out by regulators.

The bankers in question are Patrice Ktorza, an executive director formerly of JP Morgan Chase & Co. and Nihel Bensenane, who still works in foreign exchange sales for Citigroup.

According to the newswire, Ktorza is suing for unfair dismissal, while Bensenane is taking court action due to a dispute over pay and alleged sexual discrimination. The hearing for Ktorza will take place on June 1, with Bensenane’s claims to be heard one day earlier.

The duo are just the latest in a large group of traders taking action against banks over the last few months on the back of internal disputes and widespread firings following the foreign exchange scandal. Bensenane is actually the fourth employee to take action against Citigroup alone.

Regulators have been investigating alleged collusion between traders to manipulate benchmark currency rates and enjoy profits at the expense of clients. By targeting rates that were used to value investments worldwide, they were able to determine the price paid by some fund managers and companies in order to swap currencies.

Already banks have had to pay billions in fines for the manipulation of prices for euros and US dollars.