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Bank of England governor to testify on burgeoning foreign exchange trading scandal

Bank of England Governor Mark Carney is set to address accusations that the central bank condoned or was aware of manipulation in the foreign exchange markets.

Carney appears before an influential committee of lawmakers Tuesday days after the bank suspended a member of staff while it investigates the allegations. So far, the bank has found no evidence that staff colluded in market manipulation or in sharing confidential client information.

Regulators say the scandal threatens to be as serious as the rigging of the London interbank offered rate, or Libor.

Carney's deputy, Andrew Bailey has already admitted that the claims could prove "enormously damaging."

The Financial Conduct Authority, which regulates the sector, launched its investigation last year and said it was examining a number of firms.