Monday, September 29, 2014

FX Rigging Fines Could Reach $3.3 Billion in the UK

Some of the world’s leading banks are slated for a 2 billion ($3.3 billion) fine from U.K. regulators, following investigations into currency rigging, sources told CNBC.

The U.K. Financial Conduct Authority has concluded its investigation into foreign exchange manipulation involving six banks — JPMorgan, Citi, Royal Bank of Scotland, Barclays, HSBC and UBS — and has demanded financial settlement that could amount to 2 billion.

The fines would be paid to settle allegations of attempted manipulation of foreign exchange trading. This follows an international investigation by U.S. and U.K. regulators into the $5.3 trillion-a-day forex trading market. The probes stem from claims that foreign exchange benchmarks and a key interbank interest rate known as the London Interbank Offered Rate (Libor) were rigged by traders from 2005 onwards.

via CNBC

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