UBS considers canceling bonuses for its forex traders
Banking giant UBS has said that it might be canceling bonuses for its forex traders. UBS is one of the six banks this week that has been fined for being involved in the manipulation of foreign exchange markets. Forex is the abbreviation for the foreign exchange market.
A report in Financial Times confirmed that the bank was one of five banks that is considering not giving millions of dollars in bonuses to individual traders.
A UBS spokeswoman said that the bank is going to work on canceling bonus payments in cases where traders were involved in wrongdoing.
Royal Bank of Scotland Group, another bank fined for the same reason, suggested it could be adopting a similar measure.
RBS chief Ross McEwan said in a statement Friday:
“We are still working our way through disciplinary and accountability processes involving over 50 employees and their managers,”
“While we will treat all people fairly, those who have been found lacking in conduct or accountability terms will be dealt with appropriately, including through claw back, award forfeiture, or through formal disciplinary procedures,” he said.
Global regulators fined RBS, UBS, HSBS, Citigroup, and JPMorgan Chase $4.2 billion on Wednesday.
The fines stem from a global probe into the scandal of the $5.3-trillion-per-day forex market.
The scandal adds to the already damaged reputation of the banks, which were subject to high criticism because of their roles in causing the 2008 global financial crisis and world economic slowdown.