These Banks Have Cheated You Of Foreign Exchange Prices, Now Required To Pay $2 Billion In Settlement

These Banks Have Cheated You Of Foreign Exchange Prices, Now Required To Pay $2 Billion In Settlement
Money Ervins Strauhmanis/ Flickr CC license

Lawyers who represent eight of the banks that are accused of currency rigging in major lawsuit have agreed to pay a total of over $2 billion in a settlement.


Reuters reported that a lawyer who spoke during a hearing in the Manhattan federal court had stated that the said settlement will include Bank of America, Barclays, BNP Paribas, Citigroup, Goldman Sachs, HSBC, Royal Bank of Scotland and UBS.

Earlier this year, Reuters reported that a federal judge has allowed U.S. investors to pursue an anti-trust lawsuit with regard to alleged rigging of prices in the foreign exchange market. The said rigging amounted to as much as $5.3 trillion a day.

Related news: StumbleUpon Retrenching For Failing To Compete

12 banks you should look out for

The 12 bank defendants included Barclays Plc, Bank of America Corp, BNP Paribas SA, Citigroup Inc, Credit Suisse Group AG, Deutsche Bank AG, HSBC Holdings Pls, Goldman Sachs Group Inc, JPMorgan Chase & Co, Morgan Stanley, UBS AG and Royal Bank of Scotland Group Plc.

Like us on Facebook

In Manhattan, U.S. District Judge Lorna Schofield had rejected the defendants’ argument that there was a lack of evidence that shows that they have conspired to manipulate the WM/Reuters Closing Spot Rates, which is also known as the Fix. However, Schofield had stated in her decision that the said complaint against them “adequately alleges” that they had been conspiring.

Past settlements included three of the bank defendants

In January, JPMorgan Chase & Co had reportedly already agreed to pay $99.5 million in order to settle its portion of the said antitrust lawsuit, according to Reuters. Meanwhile, UBS AG had settled $135 million in March while Bank of America Corp has settled an undisclosed amount in April.

The said lawsuit is still separate from other criminal and civil investigations worldwide with regard to the 12 banks rigging currency rates in order to increase profit, at the cost of its customers and investors.

Six of the bank defendants have already agreed to civil fines from U.S. and European regulators amounting to $4.3 billion earlier this year. Meanwhile, 9 of the banks have banned their traders from multi-bank chat rooms and all of the bank defendants had enforced suspension or departure of over 30 employees linked to currency operations.