Lloyd's Investigates Own Currency Trades

Some sort of scandal might be brewing in the currency trading department at Lloyd's Banking Group PLC LYG in the City of London. Reuters reported that both Lloyd's itself and unidentified regulators are investigating reports of manipulation in Forex or currency trading. The details of the manipulation were not revealed but it appears to be centered in London. The situation is probably serious because Lloyd's itself issued a press release in which it stated that regulatory and enforcement authorities were investigating foreign exchange trading. A Reuters report indicates that other banks including Barclay's BCS and UBS UBS are also being investigated. So far no American banks have been caught in this latest scandal. Lloyd's stock fell by 1.42% or 7¢ in trading on Wednesday. This news probably won't do much good for Lloyd's share price which was $4.85 on Nov. 6. Interestingly enough the share price of the other two banks mentioned in the media reports UBS and Barclay's were up slightly on Wednesday. UBS's share price increased by 1.49% to $18.45 and Barclay's moved by 1.81% to $16.33 a share.