Wednesday, 12 November 2014

Major Global Banks Fined For Forex Rigging

British, US and Swiss regulators imposed a total $3.2 billion in fines against five major US and European banks over allegations of rigging in foreign exchange markets.

The hefty fines, announced in London, Washington and Zurich, follow a worldwide probe into the scandal surrounding the $5-trillion-a-day forex market.

British banks HSBC and Royal Bank of Scotland (RBS), US groups Citibank and JPMorgan Chase, and Swiss bank UBS have all been fined by Britain's Financial Conduct Authority (FCA) and the US Commodity Futures Trading Commission (CFTC).

The FCA hit the five banking giants with a total penalty of $1.7 billion, while the CFTC has fined them $1.4 billion over the same matter. In addition, the Swiss Financial Market Supervisory Authority (FINMA) announced a $139 million settlement with UBS.

News of the fines was welcomed by the British government. The total FCA fine is a record amount and eclipses the $847 million penalty it handed down to banks and brokers over the 2012 Libor interbank rate-rigging scandal.

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