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Fed bars former HSBC forex traders from banking industry

The Federal Reserve System issued a prohibition orderagainst Mark Johnson and Stuart Scott, former traders at London-based , a unit of .

Johnson, HSBC Holdings' global head of foreign exchange cashtrading, was arrestedin July in New York by the U.S. Department of Justice on accusations of foreignexchange rigging. Scott, HSBC Holdings' former chief of cash trading forEurope, the Middle East and Africa, was charged along with Johnson.

The Justice Department's fraud section and U.S. AttorneyRobert Capers have filed an 11-count indictment against Johnson and Scott. Johnson pleadednot guilty to the allegations.

The enforcement action noted that the prohibition order willbe effective until the indictment is disposed of or the action is terminated bythe Fed.