New York’s top banking regulator has demanded documents from more than a dozen banks, opening a new front in the sprawling global investigation into alleged foreign exchange manipulation.
Ben Lawsky, superintendent of New York’s Department of Financial Services (DFS), sent requests to banks including Deutsche Bank, Goldman Sachs, Lloyds, Royal Bank of Scotland and Standard Chartered, one person familiar with the matter said. All the banks declined to comment on whether they had been contacted.
The intervention by Mr Lawsky comes just a day after the UK’s financial watchdog said allegations that traders colluded to manipulate prices in the $5.3tn spot market were “every bit as bad” as Libor rigging claims, which have resulted in more than $6bn in fines.