Embattled ex-HSBC Johnson Pushes Back on Allegations, ‘Fair all around’

link: https://www.financemagnates.com/institutional-forex/regulation/embattled-ex-hsbc-johnson-pushes-back-allegations-fair-around/

 Jeff Patterson | Regulation ( Institutional FX ) | Thursday, 12/10/2017 | 12:19 GMT

One of HSBC’s former top traders and Head of Global FX Cash Trading Mark Johnson defended his actions this week during a trial in New York. Johnson attempted to shoot down the allegations of market manipulation and illicit gains, affirming the fairness of his actions in a $3.5 billion Cairn Energy transaction.

Mark Johnson on witness stand questioned by his defense attorney Frank Wohl. When asked how he described the eventual outcome of the deal, he responded: “I was surprised. It was a lot better than expected outcome for HSBC. But I felt it was fair all round . . . For the risk that HSBC took, the outcome was fair.”( click on image to see larger)

Johnson’s trial kicked off last week in New York, having originally apprehended the UK national in JFK airport last month. Prosecutors had been pointing to a variety of circumstances and actions surrounding Johnson’s lead role in the Cairn Energy trade, which saw the bank net nearly $8.0 million in illegal profits.

Defense Expert Kevin Rodgers on the witness stand. HSBC Mark Johnson trial. Rodgers,  former head of foreign exchange trading for Deutsche Bank told the New York federal jury weighing the criminal case against Johnson  that “pre-hedging,” or making some of a large currency purchase in advance, is a standard practice that can be beneficial to the buyer because it keeps the price down. ( click on image to see larger)

From the onset of the trial Johnson has been on the defensive after facing particular damning testimonial evidence. Recorded conversations picked up code words to his fellow traders, including the phrase ‘my watch is off’, which ultimately triggered the frenetic buying action from the traders.

Artwork by Elizabeth Williams