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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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza