Reuters / Yuriko Nakao
Some of the world’s biggest banks - UBS, Citigroup, JPMorgan Chase, Royal Bank of Scotland, and HSBC have agreed to pay out $3.4 billion to settle an investigation into the institutions’ rigging of foreign exchange rates.
The probe accused banks of tampering with currency interbank rates on the largely unregulated $5.3 trillion-a-day foreign exchange market.
Charges against individuals are expected.
Many regulators worry currency rigging is the next
Libor scandal when banks manipulated the Libor interbank lending rate by setting it low against the dollar in order to mask their financial problems. In that case over $6 billion in fines have been doled out to dozens of banks.
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