British lawmakers to quiz bankers after forex fines-source

By Kirstin Ridley

LONDON, Nov 18 (Reuters) - British lawmakers will quiz topbankers in the wake of last week's $4.3 billion deal withregulators to settle allegations of collusion and manipulationin the foreign exchange market, a source familiar with thematter said on Tuesday.

The source said the decision by the powerful Treasury SelectCommittee (TSC) had been agreed in principle. But hearings intohow traders attempted to rig the $5.3 trillion-per-day forexmarket may not be held until December or possibly the New Year.

The TSC, charged with overseeing finance, had been expectedto publicly question bankers and regulators after Royal Bank ofScotland, HSBC, JPMorgan, Citigroup, UBS and Bank of America struck theagreement with British, U.S. and Swiss watchdogs.

The latest scandal, less than two years after regulatorsstarted slapping $6.0 billion of fines on banks for allegedbenchmark interest rate fixing, sparked fresh political demandsfor bankers to be held accountable and culpable for misconduct.

The manipulation of currencies by groups of traders callingthemselves names such as the "three musketeers" continued untilOctober 2013 - around 16 months after the Libor interest raterigging scandal erupted and bankers assured lawmakers that theywere getting to grips with changing the culture at banks.

TSC Chairman Andrew Tyrie has already voiced outrage at theforex allegations. He said traders in a position to harmemployers, clients or markets should see remuneration deferredfor long periods and risk having their licences to practicewithdrawn if they behave badly.

The Bank of England, which fired its own chief foreignexchange dealer after an investigation criticised his handlingof suspicious market practices, has also suggested that seniorbankers' fixed salaries might in future be at risk if they ortheir staff break rules.

It remains unclear whether the TSC will expand the hearingsto also include officials from the Bank of England and FinancialConduct Authority (FCA), the source said.

(Editing by Mark Heinrich)