Currency scandal cost big banks $ 3.4 billion – Reuters Germany

Currency scandal cost big banks $ 3.4 billion – Reuters Germany

       

– by Kirstin Ridley and Joshua Franklin

       

London (Reuters) – The scandal over rigged exchange rates, regulators have first imposed heavy penalties against five major international banks.

       

Almost $ 3.4 billion must be paid together to the supervisory authorities in the UK, the USA and Switzerland, UBS, Royal Bank of Scotland (RBS), HSBC, JP Morgan and Citigroup. “Today’s record fines emphasize the seriousness of the violations that we have uncovered,” said the head of the London Financial FCA, Martin Wheatley, on Wednesday in announcing the settlement. “The banks are now the responsibility of, the to move straight again.”

       

One of the biggest Forex traders in the world is one of the German bank, which is however not part of the comparison. The Institute argued to have played only a minor role in the foreign exchange affair to current knowledge. But the internal investigations are ongoing, some traders were already suspended or on leave. The foreign exchange market is huge: more than five trillion dollars per day here implemented.

       

For over a year to go regulators around the globe to the suspicion that foreign exchange dealer customers have taken to the cleaners – similar scandal involving manipulation of the interbank interest rates Libor and Euribor. The EU Commission and the German Financial BaFin determined. The Anglo-Saxon investigators saw it now proved that dealers have tried in the affected institutions to screw in major courses in order to pocket profits – successful in many cases and even up to the October 2013 into it. Effective controls were missing.

       

British Finance Minister George Osborne welcomed the penalties imposed. Corruption must be fought with a few punches, so that the financial system as a whole take no damage, he said.

        
       

UBS GETS THE LARGEST ACCOUNT

       

The UK regulator FCA stated that it was dealing in the thing now only with the domestic banking giant Barclays, which had swerved from the settlement negotiations. Here the investigation continued. Investors reacted disappointed: With a decrease of two percent Barclays shares lost until noon with most of the UK financial values ​​a. Continued …