Summary: Settlements are being reached between investors and some of the major banks involved in the foreign exchange market manipulation.
A $2 billion settlement has been reached between investors and nine major banks. The investors took their claim to a U.S. court against banks including the Royal Bank of Scotland, Barclays, and HSBC. There is also a possibility that the case will brought to courts outside the U.S.
The investors claimed that their losses were from the fixing of foreign exchange markets. The banks have already been slapped with heavy fines for their involvement in manipulating the forex markets by the Financial Conduct Authority and the U.S. Department of Justice.
David Scott of Scott + Scott stated “the settlement agreements we have entered into with nine banks go a long way to ensuring that they are being held accountable for their egregious manipulation of the foreign exchange market.”
Most, if not all, of the banks have factored large amounts for settlements into their budgets. There are still seven other banks being pursued for their participation, with some alleged to have manipulated the market since 2003.
Moody’s, a ratings agency, has released updates on its determination of Barclays and RBS, referring to the on-going cost of litigation and investigations. RBS and Barclays have been given a stable outlook but noted that both banks have areas that need work and further attention.
Photo: marketbulls.net