Articles Posted in bank market manipulation charges

Five global banks, UBS, JP Morgan, Barclay’s, RBS and Citigroup have agreed to pay $5.7 billion in penalties and will plead guilty to criminal charges resolving a U.S. investigation of traders at the banks colluding to rig foreign currency rates in to benefit themselves. Authorities said euro dollar traders at the banks, communicated through coded language in an online chat room coordinating movement of the foreign exchange rates set at 1:15 and 4 p.m.The traders witheld bids or offers to avoid moving the rate negative to  open positions held by other members of their “group”, in violation of antitrust laws, prosecutors said.

The $5.7 billion is in addition to $4.3 billion paid by some of the banks in November to end similar charges from the United States and United Kingdom.

No traders have yet been criminally charged over the conduct, but New York’s financial regulator but Barclays to fire eight employees in connection with the resolution. Investigations into individuals are continuing.

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.