By Suzi Ring and Kit Chellel - 15 September 2015
As banks try to clean up trading floors beset by benchmark-rigging scandals, not all fired workers are leaving quietly. London’s specialist employment courts offer a chance to get justice, recover lost bonuses, or just hurl dirt at former colleagues.
Six cases involving former currency traders at Citigroup Inc., HSBC Holdings Plc and Lloyds Banking Group Plc have emerged in the last month. Some of the traders say they were unfairly swept up in clear-outs of currency desks at the center of regulatory probes into the manipulation of foreign-exchange markets.
More than 30 traders were fired, suspended or put on leave over the last two years since the foreign-exchange investigations started, with about $10 billion in fines levied against banks globally.
Legal conflicts often follow periods of upheaval in the finance sector. Lay-offs linked to the London interbank offered rate scandal triggered a spate of lawsuits. Most were settled out-of-court by banks keen to avoid dragging up historic allegations of misconduct. In the years after the 2008 financial crisis, fired bankers were telling London employment judges they had been made scapegoats for systemic failings.
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