The United States Department of Justice and British authorities are expected to announce fines against Barclays and the Royal Bank of Scotland in excess of $15.8 Billion . Payment by the banks would settle charges they conspired to manipulate global currency markets.
In addition to the two banks, according to news reports, JP Morgan and Citigroup and Switzerland’s UBS, are also expected to be fined by UK and US authorities approximately $5 billion to settle charges that they conspired to manipulate global currency markets.
In November, RBS, HSBC, UBS, JP Morgan, Citigroup and Bank of America Merrill Lynch were collectively fined £2.7billion by the UK’s Financial Conduct Authority, the US Commodity Futures Trading Commission (CFTC) and Swiss financial regulator Finma.
Like Libor, the currency market rigging scandal involved traders at different firms working together to profit from their own market positions.