In a Shocking Outcome, Bank of England Dismisses its Forex Chief

Bank of EnglandThe chief currency dealer of the Bank of England (BoE), Martin Mallett was fired in what proved to be shocking news for many out there. There are charges of more than 20 breaches in the bank protocol. This was unearthed during a grilling of the Parliament as to how much the bank knew about this whole mess.

Mark Carney, the Governor of BoE, faced the treasury select committee today told the reporters that there are at least 20 such instances where the former chief was found short. The company found a series of misjudgements, which was totally unrelated to the Grabiner inquiry.

The series of misjudgement includes inappropriate email attachments, usage of inappropriate language on more than one occasion, imposing opinion over the banks final say, leaking information which is confidential in nature and many more.

The sacking was announced last November as a result of Central Bank’s internal policy breach and not the forex scandal, which broke out at the same time. It was the same time when six other banks were fined a huge amount of €2.1 billion by the regulators for the forex scandal.

The Grabiner, after a prolong probe, found that the former chief could not reason beyond doubt about the behaviour of the forex traders from 2008. This was taken into account. The committee believes that this incident straightway puts the market participant on the back foot and gave the traders an undue advantage over others.

Carney in a Parliamentary hearing revealed that the poking of eight years of emails and instant messages has revealed that Mallet, the former chief has sent confidential document to a person who does not belong to the Bank of England. He also mentioned that there was one such instance where he was found to be giving his own opinion about the monetary policy.

Carney in a statement expressed his disappointment over the whole affair and stated that this is extremely sad since the person in question has served them exceedingly well in the past, but also reminded that such gross misjudgement about so many things and so often when the facts are lying in plain sight is unacceptable. He said that the bank had no choice but to take action against him.

Carney reiterated the fact that in the recent past, the Bank of England has passed over 40 cases of financial misconduct for inquiry to the Financial Conduct Authority. Meanwhile, many conservatives have expressed their dissatisfaction over the whole incident.

Some also added that the authorities were too lenient while investigating the forex scandal. The bank on the other hand did not bother to embrace high standards of scrutiny. The former Chief kept mum and declined to comment when approached by a few media houses.

It would be very interesting to see how the BoE and the other regulatory authorities go on from here. Whether only sacking the chief is sufficient is something that many will look at.

The BoE has to also come up with satisfactory answers about how the bank is going to ensure that instances like these never occur in the future again.