The Citigroup foreign exchange dealer who disclosed sharing of confidential information prevails over legal allege against the American bank.
Investigations were done into the claimed rate-rigging, a currency trader based in London sacked by Citigroup after he has won his unfair dismissal case. Perry Stimpson, a forex trader who was fired in November last year, has had his charges supported by an employment trial. He worked at the US bank for over 20 years and was sacked for spreading confidential details of clients with other dealers.
His dismissal arrived after a search into the allegations that some banks’ staff in US and UK was controlling foreign exchange rates and the Libor – the standard which is utilized to outlay trillions of pounds of loan and other financial tools worldwide.
But according to Mr. Stimpson, the management was aware of the sharing of information in chatrooms online.
“We had some guidelines and the penalty given to me was really unfair and harsh,” Mr. Stimpson said in his statement.
As said by Mr. Stimpson during the trial, he had disclosed information in a chatroom yet that whether it was acceptable to do so was “a little grey area”, though he was claiming that such activity is a widespread practice all over the industry. Mr. Stimpson’s claim was supported by Judge Allison Russel, saying that he had been unjustly dismissed and that the Citi had violated his contract by not even giving him notice. But, she ruled also that Stimpson had supplied to his dismissal.
Citi said in a statement – “As we are upset by the tribunal’s verdict, individual liability is vital to us and knowing that, we supported the case in the court.”
“We anticipate that our staff will stick to the highest ethical standards and will not accept any breaches on our code of conduct.”
Citigroup is among the 7 banks fined with over $10bn for failing to prevent dealers from rigging the $5.3 trillion/pay forex market. The bank paid fines amounting to $2.3bn in the US and UK. The City staff watched closely the claims and is one of the numerous claims. Other banks and traders have been monitoring the result of the case with interest, with some more same claims lined up next year.
In September at East London Employment Tribunal is where Mr. Stimpson’s trial was held and the ruling will come on Tuesday.