Five of the world’s largest, influential banks have received a record-breaking $5.7bn in fines for altering the rates in the foreign exchange market.
20 May 2015 – RT
Barclays, Royal Bank of Scotland, JPMorgan, UBS and Citigroup were hit with penalties from UK and US authorities Wednesday.
Four of them agreed to plead guilty to criminal charges for rigging benchmark interest rates, the US Department of Justice said.
All the banks have agreed to a three-year period of corporate probation, which, if approved by the court, will be overseen by the court and require regular reporting to authorities as well as cessation of all criminal activity.
The new penalties bring the total fines in the foreign exchange scandal to almost $10 billion, one of the most expensive in banking history.
Traders from Citigroup, JP Morgan, Barclays and Royal Bank of Scotland used coded language while in an invitation-only electronic chat room. They used this to manipulate the price of US dollars and euro between December 2007 and January 2013.
“The charged conspiracy fixed the US dollar – euro exchange rate, affecting currencies that are at the heart of international commerce and undermining the integrity and the competitiveness of foreign currency exchange markets which account for hundreds of billions of dollars worth of transactions every day,” said Assistant Attorney General Baer.