Five of the world’s biggest banks are expected to be hit with a combined bill of more than $5 billion and criminal charges on Wednesday in a settlement with U.S. and British authorities over rigging of currency markets. Some big banks will pay for their traders allegedly manipulating the $5-trillion-a-day foreign exchange market to about $ 10 billion.
The Banks which are guilty are as follows:
- U.S. banks JPMorgan and Citigroup
- Britain’s Barclays
- Royal Bank of Scotland
- Swiss bank UBS
- Barclays
Points To Remember:
- JP Morgan and Citi group are expected to plead guilty to criminal charges with the U.S. Department of Justice related to forex manipulation, people familiar with the matter said. JPMorgan and Citigroup would be the first major U.S. banks to plead guilty to criminal charges in decades.
- Swiss bank UBS is expected to avoid a criminal charge after getting immunity for alerting authorities to a possible problem. But it faces a criminal charge over the rigging of benchmark (Libor) interest rates, two people familiar with the matter said.
- Barclays is also expected to reach settlements with other British and U.S. regulators, which means its penalties could be significantly higher than the other banks and top $2 billion. Barclays has set aside $3.2 billion to cover any forex fines, and other banks also have provisions for settlements.
