Cowboy capitalists
How bank traders went rogue on the rand
Rogues reined in
Investors seem to be bargaining on banks found guilty of collusion over rand/dollar exchange rates having to pay relatively modest fines. They could be mistaken. Globally, the precedent is for large fines — and the competition tribunal may want to underline the need for greater oversight of the currency trading desks. Last week, Barclays Africa’s finance director Dave Hodnett walked into the emotionally charged currency trading floor at Absa Towers, and told the 60-odd staff to brace for a public backlash from the currency-rigging scandal. Traders, many still quite young, were spooked. Some even teared up.Certainly not, says Paul Harris, now retired co-founder of FirstRand, who thinks it ludicrous to suggest the top tier of bank executives were involved in currency rigging. “Obviously, collusion must be dealt with ruthlessly — but here, it seems there may have been rogue elements within the banks. There’s no way any bank would knowingly be part of collusion. We have regulation comin...
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