HSBC executive pleads not guilty in US over forex scheme

A senior HSBC Holdings Plc executive pleaded not guilty Monday to charges that he participated in a fraudulent scheme to front-run a $3.5 billion currency transaction by one of the bank’s clients.

HSBC was not among those banks, but in 2014 agreed to pay $618 million to resolve related probes by U.S. and British regulators.

The U.S. Justice Department has continued to investigate, and HSBC has set aside $1.2 billion to cover various forex-related probes.

In total, HSBC earned $3 million from trades its currency traders placed, and $5 million from executing the transaction, according to the charging papers.

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