Banks struggle to fill gaps in forex staff
A VOID is appearing in the upper reaches of the world's biggest and most powerful financial market as banks struggle to replace currency traders suspended or fired during a global investigation into allegations of foreign-exchange rate rigging.
Recruitment firms and sources at some of the banks at the centre of the probe say there is huge reluctance to hire externally because replacements could be tainted by allegations of collusion themselves.
That leaves managers with the choice of promoting junior staff into powerful chief and senior dealer positions or appointing staff from other units of the bank who are less familiar with the daily workings of the US$5.3 trillion-a-day (S$6.7 trillion-a-day) forex market.
An investigation last year into rate rigging in Singapore found 133 traders tried to manipulate lending and forex reference rates, many of whom banks have struggled to replace.