By Dow Jones Business News,
February 05, 2014, 12:15:00 PM EDT
A New York state banking regulator has requested documents from more than a dozen banks over their foreign-exchange
trading practices, said a person familiar with the matter.
Benjamin Lawsky, the superintendent of the New York State Department of Financial Services, sent letters to Goldman
Sachs Group Inc., Deutsche Bank AG, Credit Suisse Group AG and other banks. Mr. Lawsky's office regulates state-
chartered banks, like Goldman, and foreign banks with U.S. branches.
The investigation by Mr. Lawsky's office comes as several banks have been embroiled in investigations into potential
manipulation of foreign exchange markets. Those investigations prompted Mr. Lawsky to launch his own, said the person.
Other banks contacted by Mr. Lawsky's office include Société Générale SA, Standard Chartered PLC,
Royal Bank of Scotland Group PLC and Lloyds Banking Group PLC. The Department of Financial Services has civil, not
Goldman, Credit Suisse, RBS and Standard Chartered declined to comment. A Lloyds spokesman confirmed the bank received
the request for information from Mr. Lawsky and said, "We always assist such requests from our regulators." The other
banks didn't immediately respond to requests for comment.
Civil and criminal investigations into banks foreign exchange practices began last year in the U.K. and have spread to
the U.S., Switzerland and Hong Kong. The probes have unearthed indications that some senior London-based traders
colluded to manipulate currency prices to minimize or maximize losses, people familiar with the investigations have
said. Electronic chat-room messages appear to show that traders from different banks shared information about client
orders and agreed to a sequence for placing their own trades to their advantage, the people have said.
In recent weeks, several big banks have suspended traders in connection with the investigations.
The news of Mr. Lawsky's document request was earlier reported by Bloomberg.
Write to Shayndi Raice at email@example.com
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