No, they really shouldn’t have done this:
HSBC said the conduct which led the Department of Justice to issue this second DPA took place between 2010 and 2011 and, according to the document, relates to its handling of a client order by Cairn Energy and financial services it provided to another unnamed company.
The Cairn Energy case included Mark Johnson who, in October, was found guilty of defrauding Cairn over a £3.5bn client order. A jury ruled that he had driven up the value of the pound against the dollar by buying sterling prior to the transaction in order to make a bigger profit for HSBC.
Frontrunning. It’s not that they’ve screwed the market, it’s that they’ve screwed their own client.
HSBC has agreed to pay just over $100m (£72m) in penalties to settle a US Department of Justice probe into currency rigging.
Currency rigging isn’t really right, not the correct description, but a decent fine is.