Wednesday for rigging the foreign exchange market and Libor interest rates. They said forex traders from the banks had met in an online chatroom brazenly named “the Cartel” to set rates that cheated customers while adding to their own profits in the massive global currencies market. In the far-flung settlement, Barclays Bank, JPMorgan Chase, Citicorp and the Royal Bank of Scotland all pleaded guilty to US Justice Department charges of conspiring to manipulate the massive forex manipulation ubs market.
Switzerland’s UBS meanwhile pleaded guilty to violating a prior settlement of charges for rigging the Libor interest rate. And Bank of America was included with the other five in fines levied by the US Federal Reserve in the forex rigging case. They acted as partners – rather than competitors – in an effort to push the exchange rate in directions favourable to their banks but detrimental to many others,” said US attorney-general Loretta Lynch. And their actions inflated the banks’ profits while harming countless consumers, investors and institutions around the globe. 5 billion against Barclays, JPMorgan, Citicorp and RBS in the forex case. 8 billion to the US Federal Reserve over “unsafe and unsound practices” in forex markets. 3 billion by Britain’s Financial Conduct Authority, the New York State Department of Financial Services and the US Commodity Futures Trading Commission.
Traders from the banks, communicating via the Cartel chatroom, agreed to withhold bids or offers for euros or dollars at distinct times to protect each other’s trading positions, the Justice Department said. The banks involved represented at least one-fourth of dollar-euro transactions each year and “were uniquely positioned to manipulate the market”, said assistant attorney-general Bill Baer. A number of traders are facing charges in various countries for their roles in the scheme. 4 billion for British bank Barclays, depending on a bank’s involvement in the scheme. The Barclays sum was high because it had not participated in the November settlement between several banks and the FCA, DFS and CFTC.
Georgina Philippou, the FCA’s director of enforcement, called Barclays’ role “another example of a firm allowing unacceptable practices to flourish on the trading floor”. Barclays chief executive Antony Jenkins said he regretted that “some individuals” within the bank “have once more brought our company and industry into disrepute”. This demonstrates again the importance of our continuing work to build a values-based culture and strengthen our control environment,” he said. 3 billion, called the scandal “an embarrassment to our firm, and stands in stark contrast to Citi’s values”. US394 million to settle related private US class action claims.