FED fined BNP Paribas $246 mln over forex trades

The Federal Reserve on Monday slapped BNP Paribas S.A. and some of its U.S. subsidiaries with a $246 million fine for what it said were the firm’s unsafe and unsound practices in foreign exchange markets.

The Board levied the fine after finding deficiencies in BNP Paribas's oversight of, and internal controls over, FX traders who buy and sell U.S. dollars and foreign currencies for the firm's own accounts and for customers.

Its order requires BNP Paribas to improve its senior management oversight and controls relating to the firm’s FX trading.

BNP Paribas said in a statement that it "deeply regrets the past misconduct which was a clear breach of the high standards on which the Group operates."

The bank said the fine is related to activity that occurred between 2007 and 2013. BNP Paribas said it has since strengthened internal oversight and compliance measures, but pledged to continue those improvements.

In January, the Fed permanently banned a former BNP Paribas trader from the banking industry for his role in manipulating foreign exchange prices.

The trader, Jason Katz, pleaded guilty to the charge, as the Justice Department continued its global investigation into price fixing of currency markets.

The Board is also prohibiting the firm from re-employing individuals who were involved in the conduct underlying this enforcement action.