Forex rigging could be bigger scandal than Libor, admits Carney

Bank of England Governor Mark Carney has said that allegations of manipulation in the £3trillion a day foreign exchange market could prove to be a bigger scandal than the Libor rate rigging fiasco.

During a five-hour grilling by MPs yesterday, Carney said that the bank was “ruthlessly and relentlessly” investigating the claims of manipulation, which has already seen the suspension of one member of staff from the bank.

He said to MPs: “This is a very serious matter that has to be chased down as rapidly and fairly as possible. This is as serious as Libor, if not more so because this goes to the heart of integrity of markets.

“We cannot come out of this with a shadow of doubt about the integrity of the Bank of England.”

During the meeting Carney also said that if Scotland were to gain independence at the referendum in September, that the Royal Bank of Scotland may have to move its headquarters to England.

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